Argentina mining investment on pause as midterm elections loom
BUENOS AIRES - Political uncertainty ahead of Argentina's October midterm elections is holding back investment decisions in the mining sector, the country's main industry group said on Thursday, warning that instability and unclear policy signals are delaying project development.
"No one is going to make any decisions these days. That's crystal clear," said Roberto Cacciola, president of the Argentine Chamber of Mining Companies (CAEM), in a meeting with journalists.
Argentina is set to hold midterm elections on October 26, a crucial test for President Javier Milei as he enters the second half of his term amid falling approval ratings and stalled legislation in an opposition-controlled Congress.
Cacciola said the national government must resume dialogue with provincial governors - who control mineral resources under Argentine law - to restore investor confidence and ensure governability.
Argentina is a major producer of gold, silver and lithium, with significant copper reserves that remain untapped.
CAEM estimated that Argentina will register record mining exports of $5.09-billion in 2025, representing a 14% increase compared to 2024, of which 80% corresponds to gold, followed by 14% of lithium and 12% silver.
However, gold output is projected to fall 10% year-on-year and is down 39% from 2018 levels.
In lithium, production is set to rise 54% in 2025, with exports up 43%, though global oversupply and rising domestic costs have slowed some projects.
"The price drop is delaying construction of some planned projects," Cacciola said. "There are no major layoffs, but there are early signs of restructuring."
Cacciola called on the government to scrap export duties on gold, lithium and silver and withholding taxes on gold and silver, and urged clarity on a law that determines the scope of glaciers to be protected and infrastructure investment to boost sector competitiveness.
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