Latin America Round Up. Global Mining Finance 2012
In this article, Paola Rojas, Vice president, Corporate Development of Rojas & Asociados, was interviewed about Argentinean miners and the repatriation of export dollars. See below an excerpt of the article or see the full story here >>
Argentinean Miners Must Repatriate Exports Dollars
In october 2011, President Cristina Fernández lifted the oil and mining companies´ exemption and requested these companies to repatriate all export dollars. The industries must now justify all foreign-currency purchases. “About 70% to 80% of mining exports were voluntarily repatriated anyway. Companies did this to pay expenses, taxes, and salaries. It does not really hurt the industry,” states Paola Rojas, a manager at Rojas y Asociados, a consulting firm located in Buenos Aires.
Rojas highlighted the fact that the media reported the repatriation of funds in a very dramatic way, “so much that an Australian firm issued a press release assuring that its operations in San Juan were not suspended. Certain media even published that such repatriation was over profits, and it was not.”
Argentina´s attitude to mining depends on which province’s you examine; while some places are very friendly to mining, others are completely opposed to the activity. One of the “no-go” zones was Rio Negro, which has just lifted its openpit ban. chugut, meanwhile, has been negatively impacted by volcano ashes coming from a chilean volcano, for three months, resulting in the loss of hundreds of animals. Although Chubut continues banning open-pit mining, it has greatly improved the issuing of exploration permits.
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