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...
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...
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...
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,...
With a strained electricity grid and officials aiming to bring in more income to prop up the economy, the administration of President Mauricio Macri is expanding sector offerings for foreign investors. The government has been promoting renewable energy sources since 2016, and with offshore block auctions expected at the end of 2018, these two...
Several industry reports have illustrated the growing optimism in the short-term development of the international hydrocarbons sector. Although there is an overall optimism globally, the outlook in Peru is mixed with the advancement of certain projects and the stalling of others. In early 2018 the Peruvian government awarded new exploration...
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