Tuesday, June 5th 2012 - 03:04 UTC

Major Canadian uranium mining company leaves Argentina fearful of populist policies

Another Canadian miner has pulled back from investing in Argentina fearful of the latest moves from a growingly populist government and not so clear rules for the mining industry.

Cameco spokesperson Rob Gereghty said the company's focus is in four key regions: Canada, the United States, Kazakhstan and Australia

Cameco Corp., the world's largest publicly traded uranium producer, said on Monday it ended a joint-venture exploration project with partner Calypso Uranium Corp. as it was about to enter its third year.

The project did not represent a major cash commitment to Cameco – some 3 million dollars per year for three years to earn a majority stake – but it comes at a time when mining companies are nervous about committing new capital to Argentina, where the government of President Cristina Fernandez, elected to a second term by a landslide in October, is intervening the economy in a bid to stem capital outflows and bolster the market.

In April, Cristina Fernandez ordered the expropriation of partially state-owned energy company YPF from Spain's Repsol, a move that drew the rebuke even of the World Bank president, who called it a mistake.

Miners are reassessing investments in Argentina’s massive gold, copper and other resource deposits, spooked by populist measures such as the YPF expropriation, the forced repatriation of mining export revenue on local markets and requirements for companies to source equipment domestically.

Calypso, in a media release, stressed that Cameco ended the partnership due to a strategic shift, and not because of problems related directly to the company, its personnel or projects.

“Calypso has been advised the decision is in no way a reflection on Calypso … but is fundamentally a strategic shift in the region and projects where Cameco will focus their exploration efforts,” Calypso said. “Cameco will retain no interest in Energia Mineral [Calypso's wholly-owned Argentine subsidiary] or its properties.”

Cameco spokesman Rob Gereghty said the move reflected the company's focus on exploration in the four key regions – Canada, the United States, Kazakhstan and Australia – where Cameco has some 70 exploration initiatives.

Saskatoon-based Cameco entered the agreement with Calypso in late 2010, giving it the right to acquire a 51% interest by investing 9 million dollars over three years.

The moves could push Argentina onto a list of unfriendly jurisdictions for mining, like Venezuela and Bolivia, and drive investors away when the country is most in need of investment, experts say.

45 comments Feed

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1 JohnN (#) Jun 05th, 2012 - 03:17 am Report abuse
$3 million a year not a big investment for a miner, but says something when Cameco evaluates Kazakhstan as having a more secure investment climate than Argentina.
2 Doveoverdover (#) Jun 05th, 2012 - 07:43 am Report abuse
Antrim Energy, another Canadian Company, extracted itself from the clutches of the Argentinian Government last week too.
3 Think (#) Jun 05th, 2012 - 08:29 am Report abuse
Personally, I can’t get enough of those Anglo ”Sopranos” Mining Companies out of Argentina.

The Chuzpah of those guys is unbelievable.

In the 80’s, Meridian Gold predecessor tried to bribe confidential info from me…

In the 90’s they bribed that same info from an UNDP Canadian “Consultant”….

In the 00’s they wanted to start their Gold mine ASAP…

We kicked their sorry ass out of town …
4 Tabutos (#) Jun 05th, 2012 - 08:51 am Report abuse
with all the money they bring it to it too, bah who need money anyway! Actually why not ban the whole of the tourism industry? specially them Anglo-Saxon descendants and with all there stable non overly inflated Current's.... lol Argentina the joker of the world stage

And yes i was being sarcastic
5 falklandlad (#) Jun 05th, 2012 - 09:13 am Report abuse
Hey ho, despite Think's protestations, pragmatic investors are now taking a hard and realistic second look at the micro thin veneer which struggles to maintain secure inward investment in Arg. 3million USD might only be small beer to some, but having multinationals reveiw their global assets against the rhetoical nonsense expoused by CFK and her head haunchos. How much new investment from Angola, I wonder? And, from CFK's upcoming shopping spree in the big apple with 30 x US CEOs?
6 PirateLove (#) Jun 05th, 2012 - 09:58 am Report abuse
You reap what you sow :)
7 Doveoverdover (#) Jun 05th, 2012 - 10:24 am Report abuse
There are much better places than Esquel to be kicked out of. Stanley for one. At least these North Americans are leaving voluntarily, although I suppose unconditional surrender can be considered a sort of volunteering.
8 Clyde15 (#) Jun 05th, 2012 - 10:39 am Report abuse
# 3
9 Doveoverdover (#) Jun 05th, 2012 - 10:42 am Report abuse
@8 I simply assumed not enough money or other advantages/gratifications were offered. Canadians can be a bit like their Scottish forebears sometimes.
10 British_Kirchnerist (#) Jun 05th, 2012 - 11:08 am Report abuse
Or maybe Think is as honest and upstanding a citizen as he comes across, and your steryotype of Argentines is just wrong =) Anyway this looks like good news, if these “investors” keep refusing to invest, the state should just take over their operations like its done for YPF, and then the profits from the mineral wealth won't be getting creamed off abroad when they are extracted =)
11 Doveoverdover (#) Jun 05th, 2012 - 11:20 am Report abuse
Think comes across as a State employee with too much time on his hands. It is indeed good news for all advocates of State Capitalism of the National Socialist variety. It's also good news for those looking to invest within the spirit of globalisation - they can now look elsewhere.
12 yankeeboy (#) Jun 05th, 2012 - 11:30 am Report abuse
Didn't I say business would be exiting shortly? Mining is costly needs a lot of imported equipment for their work, so if they bring in a 1MM piece of equipment they are forced to buy 1mm worth of RG crap to export. Who wants to bother with that? As you will see no one...
What a bunch of clowns.
It cold in BA imminent closure of large mfgs coming.
One extended blackout away from total chaos.
13 Clyde15 (#) Jun 05th, 2012 - 12:09 pm Report abuse
Could someone define “Anglo” for me. I really don't know what countries are defined by this term.
14 British_Kirchnerist (#) Jun 05th, 2012 - 12:17 pm Report abuse
Any that speak English/descend from Brits perhaps?
15 Doveoverdover (#) Jun 05th, 2012 - 12:34 pm Report abuse
@13 This might help you get an insight into what might constitute the Anglo community of attitudes, attributes, nations, states, companies and individuals that Think is fulminating against.

16 Think (#) Jun 05th, 2012 - 01:12 pm Report abuse
@13 This might also help you get a more nuanced insight into what constitutes the Anglocentric community of attitudes, attributes, nations, states, companies and individuals that Think is fulminating against.

17 Captain Poppy (#) Jun 05th, 2012 - 02:27 pm Report abuse
The exodus begins. Even China has concerns with Argentina. Now how bad is that when a business pulls out over a few million dollars which is nothing.
18 Truth_Telling_Troll (#) Jun 05th, 2012 - 03:42 pm Report abuse
Anglo: Canadian, Australian, Belizean, Bahamian, American, British (some include scotts and Welsh, even Irish), South African, Kenyan, etc, etc...

Regardless of race, anglo.

Anglo-saxon is far narrower and is reserved when one speaks of what are seen as “British” isle traits: bagpipes, scotch, cricket.
19 ChrisR (#) Jun 05th, 2012 - 03:51 pm Report abuse
8 Clyde15

I 'think' you may be making an assumption about what 'I don't Think' aka The Turnip in Chief actually meant when he posted 'tried to bribe confidential info from me…' and the possiblity that they succeeded: he does not say either way!

Or perhaps they wanted to look at his old French L26 watch that had been hacked by the Russians into a 'Navigators watch'. After more than half-a-century he says 'it still keeps perfect time without ever being serviced' (twice a day). :o)

You just cannot believe what this turnip says.
20 Conqueror (#) Jun 05th, 2012 - 03:55 pm Report abuse
@3 Is it not the case that Meridian Gold et al “got their asses out of town” when they were suddenly slapped with a 30% export tax? After having been “guaranteed” 30 years of tax stability?
@10 Good plan! And “the state” has the “experts” to undertake these operations? No, it doesn't. This is the same “state” that took a neighbour to the ICJ because of contamination in a river. Only to find that the contamination was coming from one of their own towns! All clever people..NOT!
@14 Not you, then!
@16 we just need to get rid of hispanics and latins. What use are they?
21 JohnN (#) Jun 05th, 2012 - 04:32 pm Report abuse
3 Think: Certainly, Canadian companies have been implicated in several Argentine corruption scandals over the past 40 years and that is not to be condoned. However, it is also a reality that before these latest CFK initiatives in the Argentine economy, the Corruption Perception Index (CPI) of Argentina was a poor 3/10 - better than Venezuela with 1,9/10 and Paraguay with 2,2/10, but much worse than Chile 7,2/10 or Uruguay 7/10 - or of UK's 7,8/10.

International business will continue to do business in Argentina, but will undoubtedly demand a risk premium. Unfortunately, CFK efforts to hurt Falkland Island businesses with embargoes and legal threats will mean that these businesses probably need a risk premium or additional security as well.

Given the high CPI of UK, might be better to stop harassing Falkland Island businesses but rather to encourage full trading and entrepreneurship instead - and it would be a win-win for both Argentina and the Falkland Islands.
22 Brit Bob (#) Jun 05th, 2012 - 06:42 pm Report abuse
@ 3 I understand that Canadian companies invest about 4.6 Billion dollars in Argentina.

Argentina is one of the most corrupt nations in the World currently sandwiched in between Benin and Burkina Faso in 100th place in the World's Index of Most Corrupt countries. Canada lies in 10th place. Pot, kettle, black.
23 Clyde15 (#) Jun 05th, 2012 - 07:29 pm Report abuse
Sorry to disallusion you but the Scots are not Anglo-Saxons. They are a mixture of Celts, Britons and Norse - with some Angle blood but virtually no Saxon.
As for traits,Scotch is purely Scottish, Bagpipes mainly linked with Scotland but also Northern England, Cricket I would concede as English.
As to the other countries quoted :
Canada. I doubt that the large French population would recognise themselves as Anglos.
Australian. Again, a large percentage of Irish and now Greeks, Italians, Spanish and immigrants from the Pacific rim
American. People of original “Anglo” stock are now outnumbered by people of Spanish descent
America speaks English but I would hardly call Obama an Anglo !
The USA is largely composed of immigrants from world wide who would not consider themselves as Anglos.
Maybe a better definition would be a group of countries who hold the same values - right or wrong.
24 Truth_Telling_Troll (#) Jun 05th, 2012 - 10:02 pm Report abuse

Obama is anglo, its got nothing to do with race. All Americans are anglo. All Jamaicans are anglo, all Scotts are anglo, even the Irish (when used in the broadest sense).

This is not up for debate! Of course you make valid points which are in fact correct, and I personally know Scotts are not anglo, neither are the Irish. I understand the immigrant situation in OZ, USA, canuckland.

But it is how we call you or define you. It's the same as Latin... Think about it... is a black Cuban “latin”, an indigenous Mexican? How about “hispanic”, is a german or welsh-argentine “hispanic”?? Yes...

Both of these are just UBER-simplified terms used by the common folk. That doesn't mean they are even remotely accurate. But it is what it is.
25 Bombadier Spoon (#) Jun 06th, 2012 - 07:35 am Report abuse
@24 Please do not think this is a direct dig at you (compared to the comment I made in the previous article) You say “it is how we call you or define you” Just because some one defines me as something does not make that so. A black man in the US may not define him self as Anglo. Rather he might describe himself as African American. You may say that I am being really specific in pin pointing an idenity. It is true. I would however argue that to call every citizen living in the US or Australia as Anglo is wrong. Maybe say some is of Anglo desent then yes.

Then again you sort of recognise this I think with that last sentance. I think.

Let me know if I am wrong. Please don't just point it out if I am. This goes to everyone. If I say something that you think is incoorect then please educate/enlighten me why you think I am.
26 Doveoverdover (#) Jun 06th, 2012 - 01:29 pm Report abuse
@25 OK, here's a starter.

Someone is one word.
Identity is not spelt idenity.
Sentence is not spelt sentance.
Incoorect is just plain incorrect.

Have you ever thought about using the on-line spell checker to enhance the genuine perception that you have something worthwhile to say? If you don't you put yourself in the same sub-set of annoying posters that deliberately spell incorrectly and use joke grammatical constructs.
27 Bombadier Spoon (#) Jun 06th, 2012 - 02:09 pm Report abuse
No Doveoverdover. I suffer from dsylexia and I am ot very good at typing. Some of my mistakes are just typo's. Like missing the t in identity and incorrect. At least I try to have something constructive to say rather than picking faults with peoples spelling like you. I also think I have something worth while to say. If you don't agree with that than tough look go else where. I don't care if you think I have something worth while to say.

Actually I am not here to discuss with YOU my ability to string a sentence together. I like to discuss the topic and peoples feelings about it. Unlike you. I think you just prefer to pick on people to make your own worthless life seem a little more bearable by belittling other people. Just because you cannot understand the subject matter and unable to put forward a worthwhile thread.
28 Think (#) Jun 06th, 2012 - 04:57 pm Report abuse
(26) & (27)

Bad case of ”blue on blue” ……..

A Scottish Navy CO and a Welsh Footslogger OR shooting at each other.......

Peace, brothers in arms.... peace .....;-)

29 Simon68 (#) Jun 06th, 2012 - 05:03 pm Report abuse
27 Bombadier Spoon (#)
Jun 06th, 2012 - 02:09 pm

I have a feeling that Doveoverdover just took you at your word, and pointed out a few odd mistakes. I really don't think there was any animosity involved.
Speaking for myself, I do enjoy your comments on Mercopress, just as I enjoy almost all the commentators here, with a few exceptions which are those rather extreists on both sides of the various questions.
30 Doveoverdover (#) Jun 06th, 2012 - 07:05 pm Report abuse
@27 - 29. I will reflect on your comments before posting anything more. Suffice to say I apologise for any genuine offence, have bemusement as to the relevance of the Young Ones and am grateful for the understanding that you have shown.
31 Think (#) Jun 06th, 2012 - 08:00 pm Report abuse
(30) Cmd McDod

You say...:
“.....have bemusement as to the relevance of the Young Ones....”

I say.....:
Bemused as to the relevance of the “Young Ones” ?
Listen carefully at 0:07 and 0:20, lad !

Incontrovertible proof that the Malvinas are Argentine……….
32 Doveoverdover (#) Jun 06th, 2012 - 09:42 pm Report abuse
@31 I will take a short break from my period of self imposed reflection to observe that:

1. Your link at 28 is not the same one as that at 31, so it's hardly surprising I was bemused.

2. I can agree that the Malvinas are Argentine but that's because the Falkland Islands are British. I know, I've been there and no one was speaking Argentine.

Sleep well old boy, I'm now off to resume my reflection.
33 Think (#) Jun 07th, 2012 - 04:03 am Report abuse
(32)Cmd McDod

Period of self imposed reflection.... huhhhhhhhhhhhhh?

Just for having “ofended” a dysletic vet?
75% of Brits in here are dyslectic.
50% claim to be somehow vets.
You are getting soft, Cmd.

Anyhow, as the great Neil says......
Vegetable rights and peas....

34 Bombadier Spoon (#) Jun 07th, 2012 - 06:25 am Report abuse
Doveoverdover. After a little reflection of my own it looks like I over reacted. Think I do not think of myself as a vet but I am an ex-soldier. Look up Lance Bombardier Spooner in google and also Haji Alem. You will see and read about the conflict I served in. 75% of Brits in this forum are not dyslectic. Doveoverdover is proof of that when he pointed out my errors.

Also I am not a welsh footslogger. I served in the Royal Regiment of Artillery as a observer (Fire Support Team) and further more I am a proud Yorkshire man.

I have achieved a lot in my life. My most recent achievement was gaing a bachelor of sciences degree in microbiology though the Open University. I only managed a 2.2 but I am mightly proud of it. 9 years of hard work. I know work as a legionella consultant/risk assessor and I have now started a diploma in health and safety.

The reason I have listed all the above is so that people don't see me as just another keyboard warrior but rather as real person. I know I am not as intelligent as most people in this forum and yes at times I don't have in depth knowledge over some of the subjects discussed. That is why you often find me asking for people to explain thier opinions to me. That is why I like reading some of the better debates in the forum and that is why I also don't like it when people start a slagging match or insult tennis. However I can forgive people who have offended me like Doveoverdover. As I don't think he ment to offend. Though in this case I will ignore my last little comment and would jus like to say “THINK, you are a prat”
35 Doveoverdover (#) Jun 07th, 2012 - 06:58 am Report abuse
@33 Oh dear, up in the night again were you? You know, sometimes I get the distinct feeling that there are only three or four people behind all of the posts on Mercopress and you are behind a fair number of them. I'm just pleased for you that you've found a way to cope with your misfortune. Period of reflection over, I promise to be harder in future.
36 Bombadier Spoon (#) Jun 07th, 2012 - 07:09 am Report abuse
These threads seem to come off topic at round about 13.

How big are Cameco Corp? and how is this really going to affect Argentina?

Three million is not a big investment and could be easily found elsewhere. Although on a bigger scale is this a sign or worse things to come?
37 Doveoverdover (#) Jun 07th, 2012 - 07:38 am Report abuse
@36 Sorry for the crossed input with 34 and 35. Trying to have breakfast and type at the same time....
38 Bombadier Spoon (#) Jun 07th, 2012 - 12:00 pm Report abuse
That quite alright. Important thing is that you get your breakfast. It is the most important meal of the day and all that.
39 JohnN (#) Jun 07th, 2012 - 02:11 pm Report abuse
36: Cameco is big as a uranium producer, with about 16% of world production according to website. Interesting that Cameco is ok has not shied away from its investments in Kazakhstan or Mongolia, but its now up the Argentina-based would-be partner Calypso to find another partner, I guess.

Cameco website: www.cameco.com/about/
Calypso press release on the deal with Cameco: goo.gl/5SHgl
40 Think (#) Jun 07th, 2012 - 05:21 pm Report abuse
(35) Cmd McDod

Nope…… Not ”Up in the night again”….
Just in Beta Time Zone for a while…

At (26), you asked our thin skinned Tyke observer following question….:
”Have you ever thought about using the on-line spell checker…..?”
I have asked the same question to quite a few declared dyslectics in here.
Never got an answer…….

I can see that you are still a bit paranoid about me being behind a fair number of posters at MercoPress.
Told you before, lad………………............... Not me…..
But I have to admit that posters like, for example, “Mr. Greek Yoghurt” raise my suspicion too….
41 Doveoverdover (#) Jun 07th, 2012 - 08:38 pm Report abuse
@40 You should be sincerely flattered then because you are so regularly imitated. For my part I felt a warm glow when reading the first post on today's top story (President to attend C24). Hardly any errors at all and none distracting from the content. To top it all we have the unique and inimitable GY back from a well earned sabbatical. As for being paranoid, just because you've worked for the CIA doesn't mean to say you aren't under suspicion.

Sleep well in whatever time zone you find yourself in.
42 Bombadier Spoon (#) Jun 08th, 2012 - 08:34 am Report abuse
Dovedoverdover, Do you know greek Yogurt personnally? Just that he was the one that captured my attention when I first started reading mercopress. He is also the reason why I started posting blogs on here.

Think, I am dyslectic. Not severely so but I do sometimes struggle. I don't use any spell checkers as I have doveoverdover to point out any errors. Most of the time it is just typos. You know, hitting the wrong key with out noticing or not entering a letter by mistake. However; don't mistake my failings as stupidity.

The one thing I have noticed on here is that there are a lot of people in this forum that revel in making others look stupid or just out right insult others. I don't care how much somebody thinks they are smarter than me. The moment they insult someone else they have lost any debate or argument that was being discussed.

Think also. Yes I was particulary thin skinned that day. I was in a bad mood with a stinking headache and lashed out. As lie I have said before. You SIR are a prat. Hhhmmm sort of defies what I said about name calling. I love irony.
43 Doveoverdover (#) Jun 08th, 2012 - 01:43 pm Report abuse
@42 No I don't know anyone posting here personally. Think is certainly smarter than me - look how many languages he speaks and personalities he can present in the space of a few short hours. Sometimes he's even right in what he says. Only sometimes.
Shot over!
44 Pirat-Hunter (#) Jun 09th, 2012 - 03:22 pm Report abuse
Barrick should follow and Argentina should nationalize the gold or charge 25% royalties for mining it, gold can be an excellent substitute for cash wich tends to suff really from inflation.
45 Doveoverdover (#) Jun 09th, 2012 - 09:45 pm Report abuse
@44 Quite right. Get all companies trading on any exchange other than the BA one out of the country. That way, if you don't like what those that are left are doing you can have them penalised or closed down. Legitimately, or what passes for it in Argentina. Meanwhile, the rest will be free to invest wherever they will. By the way, Canada dissociated itself from the OAS declaration on the Falkland Islands last week. I expect some Canadian companies to take advantage of that by going into places they might otherwise not have done.

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