Argentina to sign mining agreement Monday; taxes undefined -minister


UPDATE 1-Argentina to sign mining agreement Monday; taxes undefined -minister

(Adds details of proposed agreement, background on mining
sector in Argentina)
    By Hugh BronsteinBUENOS AIRES, June 1 (Reuters) - Argentina's government will
sign an agreement with provincial governors on Monday to unify
some policies regulating the mining sector, Energy and Mining
Minister Juan José Aranguren told Reuters on Thursday.
    Tax rates still need to be negotiated between companies and
provinces, Aranguren said. The deal would also need to be
approved by the country's opposition-controlled Congress before
taking effect.
    President Mauricio Macri's center-right government has been
trying since last year to unify mining regulations to help
attract more foreign investment. Seven of the country's 23
provinces prohibit certain practices, including open-pit mining
or the use of cyanide, crucial to extraction.
    "Taxation is also an issue that is in the hands of the
provinces," Aranguren said on the sidelines of an event in
Buenos Aires. "The federal agreement will give the opportunity
to the industry and the provinces, as the owners of the
resources, to negotiate a tax scheme that will be suitable for
investments in the country."
    Since taking office in late 2015, Macri has pushed to
attract foreign investment to spur growth after 12 years of
populist policies that deterred investors. Latin America's
third-largest economy has fallen behind Chile and Peru in
attracting mining investment despite rich deposits of copper,
gold, silver and zinc. [nL1N1BD111]
    The mining sector began to recover last year after Macri
lifted export taxes and a prohibition on foreign companies
moving profits overseas. Analysts say there is some $400 billion
worth of untapped mineral resources underground in Argentina.

 (Reporting by Hugh Bronstein; writing by Caroline Stauffer and
Luc Cohen; Editing by Andrew Hay)
 ((luc.cohen@thomsonreuters.com; +54-11-4318-0645; Reuters
Messaging: luc.cohen.thomsonreuters@reuters.net))


This article appears in: Stocks , World Markets , Economy , Oil , Commodities

More from Reuters


See Reuters News

Follow on:

Research Brokers before you trade

Want to trade FX?