Milei's choice as mining minister sparks optimism in Argentina

The choice of Sergio Arbeleche to head Argentina's mining ministry in the government of president-elect Javier Milei has sparked optimism in the sector.

Arbeleche, a lawyer specialized in mining and sustainable business at the firm Bruchou & Funes de Rioja, takes on the portfolio with the mining sector facing various challenges as Argentina looks to become a world leader in the industry.

On the campaign trail Milei spoke about spending cuts, dollarizing the economy, privatizations and moving away from a model where the State has such a powerful role, in line with his right-wing and free market logic. 

He was elected in a runoff on November 19 with 55.7% of the vote to 44.3% for current economy minister Sergio Massa. Milei's government is due to take over on December 10.

The Argentine chamber of mining companies (CAEM) congratulated Milei on his victory, emphasizing the importance of mining for the country's economic recovery. The industry is the sixth largest exporter in the country, bringing in export revenues of US$4bn per year and employing 100,000 people, it said in a statement.

“By 2032, the sector should triple its exports and increase its workforce by 80% if an appropriate context is maintained. To realize this potential, a framework with basic certainties is required, such as respect for current laws, free availability of foreign currency and free access to imports,” CAEM stated.

Rodrigo Dupouy, president for Latin America at the direct lithium extraction technology firm Sorcia Minerals, is confident that the new government will boost the white metal industry.

"From the investor's point of view, it's very attractive, as it opens doors to business opportunities and new jobs," he told BNamericas.

"However, it will be essential to encourage investment and provide legal, institutional and economic certainty, which is necessary," he added.

Pablo Rutigliano, president of the Latin American lithium chamber, told BNamericas that the new government must promote a clear market for lithium and other minerals, with regulated prices, reduce the influence of the State and create more efficient systems.

He also said it would be essential to “guarantee transparency, visibility, protect investments and all the advances that have been made. And provide economic and social sustainability,” he said.

Meanwhile, Jose Marún, mining engineer and director of Komatsu-Mitsui, a manufacturer of mining and construction equipment, said that the first task for the new government is to stem inflation, change the currency exchange system, remove all limits on imports and exports, manage the distribution of dividends and repatriate capital.

“These aspects will allow Argentina to join the international competition in large-scale mining,” Marún said.

Adding up the outlined spending on the El Pachón, Los Azules, Josemaría and Filo del Sol copper projects, which are being developed in San Juan province, along with Taca Taca in Salta and Mara in Catamarca, there are total investments of around US$20bn to be made.

The industry can also “create more than 100,000 jobs in construction and a not insignificant number in operations, and develop an extensive chain of services and maintenance for mining, infrastructure development, roads, electrical systems, aqueducts, ore pipelines, etc.,” added the executive.

According to JP Morgan, Argentina is already on the way to surpassing neighboring Chile in lithium mining.