Midas Letter in Argentina: Eliminating export tax creates an opportunity for Canadian miners

One of Argentina’s first orders of business after the ouster of former president Cristina Ferdinand de Kirchner and the installation of the free market-oriented president Mauricio Macri was to eliminate a foreign export tax on minerals that rendered projects in other countries more attractive.

That announcement, made in February 2016, has had the effect, along with the explosion in lithium interest, of dramatically improving the rate of foreign investment entering the country. In Argentina’s case, the drought of the last four years in financing for mineral commodities has turned out to be a bit of a boon.

The move has had an immediate and profound impact on Canadian attitudes toward Argentina, said Mario Capello, under secretary of Mines and Energy for Argentina.

“Eighty per cent of mining investment in Argentina is Canadian,” he said in an interview this week with the Midas Letter in Buenos Aires, making them the nation’s most important mining financiers.

Capello was clear that there’s more to Argentina’s 2.8 million square kilometres than just lithium. And his mission is to make sure that message is getting out to the world.

Ref: http://nanthavictor.com

Read more from original source: http://business.financialpost.com/midas-letter

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