Argentina Mining Report 2016 - Business Monitor International - Industry Reports

Argentina Mining Report 2016

Argentina Mining Report 2016 - Business Monitor International - Industry Reports
Argentina Mining Report 2016
Published May 20, 2016
40 pages — Published May 20, 2016
Price US$ 1,295.00  |  Buy this Report Now

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BMI View: Despite Argentina s significant natural resources, we forecast the country s underdeveloped mining sector will see little growth in the years ahead. Indeed, we forecast average annual growth of just -.- to ----. ...Nevertheless, various copper and gold mines remain in development. We expect Argentina s mining sector will remain relatively small and underdeveloped compared to other Latin American mining destinations, such as Chile and Peru, and that the industry will face headwinds in the years ahead. Economic and political headwinds are prominent, including elevated inflation, capital controls, and local content requirements. ...Furthermore, corruption and weak financial and legal systems are likely to further impede inbound investment. With most miners consolidating operations and restricting capital expenditure to lower-risk jurisdictions that present more attractive economics, Argentina s mining sector will be particularly affected.

...In December Yamana Gold announced that it will proceed with the construction of Cerro Moro, its high grade, low cost gold silver copper project in Santa Cruz province, Argentina. Following the -- devaluation in December ----, we expect, the Argentine peso (ARS) is set to continue depreciating as the foreign firms operating in Argentina repatriate their profits. ...First, we expect mining firms will pursue brownfield and greenfield mining opportunities in other Latin American destinations with better developed mining sectors. For example, Chile and Peru, both of which have mined copper output far in excess of Argentina; better business environments; and investor-friendly regulatory frameworks will continue to attract the vast majority of the region s copper investment. Second, weak global copper prices will discourage investment and output growth, particularly since operational costs remain elevated in Argentina. While Argentina s business environment is steadily improving, we expect risk-averse global miners will be reluctant to spend scarce capital on projects in the country. Therefore, we forecast average annual output growth of just -.- to ----.

...Mining Industry Value, USDbn chg y-o-y ---- ---- ---- ---- ---- ---- ----e ----f ----f ----f ----f ----f - - - - - -- -- -- -- -- --- -- - - -- -- -- e/f = BMI estimate/forecast. Source: BMI calculation, INDEC Additionally, given our forecast for subdued copper and gold prices over the coming years, we do not expect Argentina to see significant investment inflows into the mining sector. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Argentina Mining Report 2016" May 20, 2016. Alacra Store. Oct 24, 2016. <>
Business Monitor International - Industry Reports. (2016). Argentina Mining Report 2016 May 20, 2016. New York, NY: Alacra Store. Retrieved Oct 24, 2016 from <>
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