THE BEST IS YET TO COME

Transcription

1 ARGENTINA MINING: THE BEST IS YET TO COME Argentine Federal Government Ministry of Energy & Mines Secretary of Mining Lic. Daniel MEILAN

2 ARGENTINE SCENARIO 2015 Conflicting federal and provincial mining policies Non compliance with Mining Investment Law Slow-down in mining operations: drilling reduced by 75% ( ) Environment & Community Mining Debate CRISIS Import restrictions / taxation of mining exports (5% and 10%) Statutory limitations to certain mining activities in 7 provinces Unresolved situation with international creditors: no access to financing FOREX restrictions / Ban on off-shore dividend distribution

3 GLOBAL SCENARIO Concentrated supply/ Business mergers Mining exploration & operations focused in Latin America Energy market scenario ONGOING Environment & Community Mining Debate Slow-down in the Chinese economy CHANGE EU views on mining ops Uncertainty over price trends Globalized anti-mining views

4 ARGENTINE SCENARIO FOR 2016 FIRST 70 DAYS IN OFFICE INTER- GOVERNMENT TEAM WORK: Joint approach on environmental and community issues STATUTORY & INSTITUTIONAL FRAMEWORK: Respect for the rule of law CHANGE Simplified import of capital goods OPPORTUNITY No export taxes for mineral products. Improved outlook on international credit front Liberalization of FOREX markets Freedom of capital inflows/outflows

5 ARGENTINA MINING Mining companies with prospects in the development phase 157 (42 active) A- International Companies (85%) 133 (36 active) B- Local Companies (15%) 24 (6 active) 2 - Mining prospects in the development phase 435 A-Prospection stage 46,25 % B-Initial exploration stage 36,25 % C-Mid advanced exploration stage 8,00 % D-Prefeasibility / Feasibility 5,70 % E-Development / Production 3,80 % 90,5% 9,5%

6 ARGENTINA MINING STAGES OF THE MINING BUSINESS ARGENTINA COLOMBIA CHILE PERU BRAZIL MEXICO Prospection Initial Exploration Advanced Exploration Project Feasibility (reserves) Construction Operation / Production

7 ARGENTINA MINING 2016 ADVANCED PROJECTS

8 ARGENTINA MINING 2016 ADVANCED EXPLORATION

9 ARGENTINA MINING 2016 THE ARGENTINE MINING INDUSTRY IN JUST 20 YEARS, ARGENTINA BECAME A MAJOR PLAYER IN THE GLOBAL MINING INDUSTRY WORLD RANKING LATIN AMERICAN RANKING Lithium 3 Lithium 2 Boron 4 Boron 2 Silver 10 Gold 4 Gold 14 Zinc 4 Copper 20 Lead 4 Lead 21 Copper 5 Zinc 25 Silver

10 ARGENTINE MINING POLICIES FRAMEWORK AND CHALLENGES

11 FRAMEWORK FOR ARGENTINE MINING POLICIES GEOLOGIC RESOURCES POLITICAL & MACRO ECONOMIC FRAMEWORK LEGAL FRAMEWORK INSTITUTIONAL FRAMEWORK DEVELOPMENT OF RESPONSIBLE MINING INDUSTRY ENVIRONMENTAL & COMMUNITY FRAMEWORK

12 GEOLOGICAL POTENTIAL 5000 KM AREA 6 AREA 5 MINING POTENTIAL PROVINCE MINING AREAS WITH RIGHTS HIGH MINING GRANTED POTENTIAL KEY EXPLORATION AREAS AREA 4 JUJUY km 2 > km 2 SALTA km 2 > km 2 CATAMARCA km 2 > km 2 LA RIOJA km 2 > km 2 SAN JUAN km 2 > km 2 CORDOBA km 2 > km 2 MENDOZA km 2 > km 2 SAN LUIS km 2 > km 2 AREA 1 Santa Cruz AREA 2 Río Negro & Chubut AREA 3 Neuquén & Mendoza AREA 4 Mendoza, San Juan & La Rioja AREA 5 La Rioja & Catamarca AREA 6 Catamarca, Salta & Jujuy AREA 3 AREA2 NEUQUEN km 2 > km 2 RIO NEGRO km 2 > km 2 CHUBUT km 2 > km 2 SANTA CRUZ km 2 > km 2 TIERRA DEL FUEGO km 2 > km 2 REQUIRED EXPLORATION INVESTMENT: USD 400 MILLION/YEAR AREA 1 OTHER PROV.... > km 2 TOTAL km 2 > km 2 High potential area pending exploration: 75%

13 GEOLOGICAL POTENTIAL SECTIONAL VIEW CHILE ARGENTINA m m Atacama Li Pelambres Pascua Au, Ag Lama Au, Ag Li Cu Cu Pachón Salar de Olaroz Salar del hombre muerto Bajo de la Alumbrera Agua Rica Taca- Taca Cu, Au, Mo Río Turbio Coal 0 m 0 m Pacific Ocean TOPOGRAPHIC-GEOLOGIC CROSS SECTION Atlantic Ocean

14 GEOLOGICAL POTENTIAL ARGENTINE CHILEAN AREAS WITH COMMON MINING POTENTIAL 5 4 MAP KEY FE: El Laco - Hierro en Salta 2 - CU: La Escondida - Samenta/Taca-Taca 3 - AU: Faja de Maricunga - Valle Ancho 4 - AU: Faja de El Indio. Pascua-Lama/Los Helados 5 - CU: Pelambres - Pachón 6 - CU: Faja Cuprífera Elisa 7 - Coal: Río Turbio Gas pipes: Norandino, Cuenca Noroeste, Gasandes, Pacífico, Methanex (3) Lithium Triangle 7

15 CHALLENGES FOR ARGENTINE MINING POLICIES SUITABLE AND STABLE PUBLIC POLICIES TO ENSURE THE DEVELOPMENT OF THE MINING INDUSTRY TRUST ONGOING AND RESPONSIBLE MINING INVESTMENT

16 CHALLENGES FOR ARGENTINE MINING POLICIES ARGENTINE MINING INDUSTRY: THE CYCLE OF RESPONSIBLE DEVELOPMENT INVESTOR WATER ENERGY- INFRASTRUCTURE, ETC. AGRICULTURE CATTLE RAISING OPS, ETC. RESPONSIBLE DEVELOPMENT COMMUNITY GOVERNMENT MINING OPERATIONS GOV T SUPPORT AS FROM PROJECT INCEPTION PROJECT RESPONSIBLE DEVELOPMENT: ENVIRONMENTAL AND SOCIAL RESPONSIBILITY FUND

17 CHALLENGES FOR ARGENTINE MINING POLICIES SOCIAL AND ENVIRONMENTAL RESPONSIBILITY FUND FUNDING: 1% MINING EXPORTS PURPOSE: CREATE A FAVORABLE ENVIRONMENT FOR MINING DEVELOPMENT IN IMPACT AREAS OF OPERATIONAL OR FEASIBLE PROJECTS. SCOPE Social/ Environmental Base Line in project jurisdiction. Water source studies. Impact identification. Prevention. Organizational Strengthening at the Provincial/Municipal/Community levels Training. Supplier development. Local and regional infrastructure development. Business programs beyond mining operations. Extractive Industries Transparence Initiative (EITI).

18 CHALLENGES FOR ARGENTINE MINING POLICIES NEXT 70 DAYS ORGANIZATIONAL RELATIONSHIP (BUSINESS GOV T TRADE UNIONS) BUSINESS Federal mining chambers and suppliers associations GOVERNMENT Coordinated federal and provincial mining and environmental policies: COFEMIN COFEMA TRADE UNIONS Argentine Mining Union: AOMA

19 OUR GUIDING PRINCIPLES E C E Argentina has a Federal Government. Natural and in particular mineral resources belong to the provinces. Ongoing engagement to ensure stakeholder agreement based on mutual respect. Prevention rather than mitigation- is a priority. Transparency: accurate and efective information to ensure social trust. Mining operations with no social development lead to unawareness and ultimately to project failure. Responsible mining through interrelated government, business and community interests.

20 THANK YOU VERY MUCH, ARGENTINA is WAITING FOR YOU THE BEST IS YET TO COME