MercoPress. South Atlantic News Agency

Argentine mining exploration expanded 21% during 2007

Mining exploration in Argentina expanded 21% in 2007 over 2006 with a record 600.000 meters drilled reported in Buenos Aires the Mines Secretariat. Looking back to 2003, exploration activity soared 265% and investments 748% reaching 1.7 billion US dollars.

"Of this high volume a high percentage was destined to risk investments in prospecting and exploration programs in areas with mining potential, operated by government and private companies" according to the report. Companies are mostly Australian, Brazilian, Canadian, Swiss, South African, Peruvian, Chinese and from the United States. In recent years Argentina has undergone a surge in mining activity, helped by a strong increase in investments and exports, pushed by the rise in international prices for metals as well as relatively low local costs. Experts say that almost 80% of Argentine territory remains unexplored for minerals. "Sustained growth of exploration activities enabled to significantly increase the volume of mineral reserves and add new assets in the whole country with 336 mining projects, up 740% from 2003". However investment advisors point out that insistent rumors about a possible increase in export tariffs (as happens with windfall earnings in agriculture and energy) added to a recent elimination of exemptions which augmented taxes on mineral sales from 5 to 10%, could discourage more investments. Furthermore in several provinces well organized environmental groups have successfully triggered opposition to some of the most controversial projects.