Argentina mining exports up 4.3% in 2023 as industry confidence grows

Argentina’s mining exports grew 4.3% in 2023 over the year, driven by lithium, an industry group said on Friday (May 3), expressing confidence that the country’s ample metals and minerals deposits can help lift the economy from a prolonged crisis.

Exports reached $4.032 billion last year, Roberto Cacciola, president of the Argentine Chamber of Mining Entrepreneurs (CAEM), said in a meeting with journalists late on May 02.

Lithium exports grew 20% over 2022 despite the collapse of international benchmark prices, while production increased 31%, CAEM said.

Argentina is the world’s fourth-largest producer of the white metal, a critical component in electric vehicle batteries.

A potential macroeconomic stabilization under libertarian President Javier Milei has encouraged cautious optimism in the sector.

“The expectation and interest of companies have grown substantially, but I insist that Argentina has a track record (of non-compliance),” Cacciola said.

CAEM projects that exports will soar to $12 billion in 2032 from $4 billion in 2023, with annual investments jumping to $3 billion from $1.8 billion over the same period.

Investments are expected to be mainly driven by lithium, with three mines in production and another six under construction; and copper, with seven projects that are mostly waiting for funding to move forward.

Cacciola said the sector would benefit from a package of reforms promoted by Mileithat Argentina’s lower house of Congress passed on Tuesday, but which faces stiffer opposition in the Senate.

“The mining provinces are very clear that they need this for large projects to go ahead,” the executive said. “Copper projects, without an additional stimulus, are not going to go ahead.”

Cacciola called for additional tax cuts to encourage exploration, citing a possible gap in mining exports as gold and silver mines are depleted before new copper projects start production.

Gold and silver production fell 5% and 12%, respectively, in 2023.

Source: Reuters reproduced by XM

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