Below the dry rocky earth of Neuquén Province lies one of the world’s most exciting energy prospects. The Vaca Muerta rock formation is found at depths of 1000-3000 metres, and covers an area of 30,000 sq km – similar in size to Belgium. The formation was given its name in 1931 by a geologist from the US who discovered its hydrocarbons content...
In a 3000-sq-km area traversing northern Argentina and neighbouring Chile and Bolivia lies the so-called “lithium triangle” an area estimated to hold over half the world’s lithium deposits. As demand surges for the products that use lithium-ion batteries – among them electric cars, cell phones and renewable energy projects – major electronics...
One of President Mauricio Macri’s major campaign promises in 2015 was to rein in the government’s ballooning fiscal deficit by reducing costly electricity and gas subsidies. Prices that had been kept artificially low since 2002, coupled with the steady depreciation of the peso, caused many energy producers to close up shop. In response, the current administration’s progressive...
Recent efforts should see Argentina catch up to its regional neighbours in terms of mining investment. During the commodity boom that lasted through the 2000s, Argentina’s Latin American neighbours reaped the benefits of their primary industries. Chile’s stateowned copper mining company generated $6.9bn in direct revenue for the government in 2011; Brazil produced 346m tonnes...
Despite growing domestic gas production from reserves at the Vaca Muerta deposit (see analysis), Argentina still relies on gas imports to meet local demand. The country was a net energy exporter in the early 2000s, but artificially low electricity and gas prices set by the government saw many producers leave the country from 2006 onwards, while at the same time enabling...
A key challenge facing mining investors in Argentina involves navigating the different legislative frameworks of each province, which under the constitution, own the subsoil mineral wealth. This gives local governments significant say in the licensing, taxing and regulation of the industry. The use of open-pit mining and cyanide are banned in Chubut Province, for example,...
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