26 www.resourceworld.com
d e c e m b e r / j a n u a r y 2 0 1 6
in Terms of deveLoPinG its natural resources sector,
Argentina has a great deal of untapped potential. The country
is blessed with deposits of gold, silver, molybdenum, cadmium,
lead, zinc, copper, lithium, iron ore, manganese, uranium and
petroleum. Unfortunately, the country of 43.4 million people –
the eighth largest country in the world in land size – has suffered
through a number of financial crises, including two bond defaults
in 13 years, even while remaining the second largest economy in
South America.
Financial problems such as a $100 billion bond default in
2001, coupled with government policies, contributed to decreases
in mining investment and exploration. For example, in 2013,
Argentina's exploration budget decreased to US $292 million,
or by 43% compared to 2012. According to the USGS, in 2013,
some 40% of mining companies working in Argentina were head-
quartered in Canada – a testament to the country's attraction by
globe-hopping Canadian explorers. Meanwhile, inflation during
2014 was over 36%, according to the CIA World Factbook.
A number of potential and existing foreign mining inves-
tors have been hoping the current election will result in a
more mining-friendly administration that would spur natural
resource development. Argentina had to undergo a run-off on
November 22 as the two leading candidates were virtually tied
– Daniel Scioli (centre-left), the expected successor to incumbent
Peronist Cristina Fernandez de Kirchner, and Mauricio Macri
(centre-right).
The runoff winner was Macri who happens to be the mayor of
Buenos Aires. It has been reported that he "wants to rewrite the
playbook on Argentina's economy".
In a interview Joseph Grosso, President and CEO of Golden
New direction for developing Argentina's
untapped resource potential
Newly-elected President Mauricio Macri is expected to foster natural resource development
by Ellsworth Dickson
