Argentina hunting new mining secretary after Milei forces Royón out

Argentina is looking for a new mining secretary again after Flavia Royón resigned on Friday, when she was asked to step down by President Javier Milei.

"Without stability, there will be no investments in mining," Royón was reported as saying by local media on Monday. 

However, she also said on social media that "I am grateful to have been called upon and I am especially grateful to the work team that supported me," and wished Milei "every success in his efforts to achieve the development of our country in general and mining in particular."

A list of candidates is currently being drawn up to select the next head of the portfolio to represent one of the most important sectors of the economy, with mining exports having surpassed US$4bn in 2023 and projected to climb to around US$5bn this year.

One of the names mentioned is Pablo Rutigliano, president of the Latin American Chamber of Lithium (Calbamerica), as he himself confirmed to BNamericas. He has plans to promote the competitiveness of Argentine mining, improve the productivity of operations and reduce logistics and transportation costs.

However, no decision has yet been made on Royón's successor, nor that of Osvaldo Giordano, the outgoing director of social security institute Anses, who the president also asked to resign.

Milei's decision was seen as a reaction to the failed attempt to pass the omnibus bill in the lower chamber of congress with which the government hopes to modernize the economy, slash red tape and reduce private sector regulation to halt the country's current economic tailspin.

However, disagreements between the ruling coalition and the opposition, as well as within the coalition itself, ended up thwarting key articles of the bill and forcing the government to withdraw it and send it back to the congressional committees on general legislation, budget and finance, and constitutional affairs.

Royón is considered one political victim of Milei's legislative failure and his attacks on provincial governors, whom he accuses of standing in his way. One of those drawing his ire was Gustavo Sáenz, governor of Salta province, under whom Royón has served.

Royón claimed that she was targeted by Milei as retaliation against Sáenz. "The president understands that Gustavo Sáenz deserves punishment and I'm from Salta. He has the right to assemble his team with people he trusts," she was quoted as saying by local media.

In addition to having been provincial energy secretary, she chaired the Salta chamber of foreign commerce, was president of promotional agency ProSalta and director of investment promotion in Salta, and had close ties to the private sector in the province.

While the omnibus bill was being debated in congress, Royón was on a tour of Europe with Sáenz and the governors of Jujuy, Catamarca and San Juan provinces to promote the potential of the Argentine mining sector and the benefits offered to investors.