Industry Trend Analysis - Supportive Reforms To Boost Mining Investment - OCT 2016


BMI View: Argentina ' s mining industry will become increasingly attractive to foreign investors, supported by favourable business reforms , low operating costs and vast mineral reserves. We expect the country ' s gold , silver and lithium sectors in particular to receive attention due to the minerals ' positive price outlooks .

Argentine President Mauricio Macri's market liberalisation agenda will increasingly support foreign mining investment in the country, as reforms create a more cohesive and open regulatory environment. As of September 7 2016, mining investment, merger and acquisition (M&A) activity in Argentina reached USD37.9mn, compared to a total of only USD7.0mn throughout 2015. We have previously highlighted the mining investment boost Argentina will receive under Macri's administration and expect this trend to accelerate as mineral prices begin to edge higher over the coming years ( see ' Market Liberalisation To Fuel Mining Deals ' , May 16).

Key reform developments and proposals include:

  • Reforms Quickly Translating Into Profit
    Hochschild Mining - Operating Income (USDmn)
    Source: Bloomberg

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