Focusing primarily on gold, zinc, and silver, Argentina is also home to one-fifth of the world’s lithium. Projects are located across the country, and particularly in Jujuy, La Rioja, and Salta provinces.
This insight sets out a snapshot of Argentina’s legal mining framework, at a national and provincial level, including the available mining rights.
What’s the Mining Law? – At the national level, mining is governed by the Mining Code (Law 1,919 as amended) and other pieces of legislation including Law 24,228 approving the ‘Federal Mining Agreement’. This law standardizes Argentina’s mining policy and was ratified by most provinces.
At a provincial level, many provinces have their own Mining Codes which generally follow the provisions of the National Mining Code. Ownership and management of resources are vested in the provinces, whose Mining Codes set out the procedure for granting and managing mineral rights.
What Mining Rights Are Available? – For exploration activities, companies may obtain an Exploration Permit. Provincial governments will review and approve applications. The term of a permit varies by province and can be as short as one year (renewable).
If a deposit is found, a mining permit application is submitted with proposed work plans, for approval of the Mining Authority. A Mining Permit has no term limit and can only expire if all mineral deposits are depleted, or activities are suspended.
What Taxes Are Imposed? – Taxes are levied by national and provincial governments, and include royalty payments which vary by province but are capped at 3%, and ‘canon’ payments on the permits which are paid bi-annually.
Any Foreign Ownership Restrictions? – There are no restrictions on foreign entities participating in mining activities, but they must open a local company. Investors commonly participate by acquiring a local company that already possesses mining assets.
Who Can Help in Argentina? – At Serus Legal, we have a bilingual team that advises on projects across Latin America. With our network, we help with company set-up, acquisitions, and preparing agreements such as royalty, JV, and earn-in.
Serus is an international law firm that uses technology and lower overheads to provide quality legal services at a significantly better value.
For more information, please get in touch with us by emailing felix@seruslegal.com or info@seruslegal.com
The contents of this insight do not constitute legal advice. All information provided is subject to review and input from a lawyer.