Snapshot: Argentine provinces adhered to Rigi

Five Argentine provinces have adhered to the federal government’s Rigi investment-incentives regime, the local office of global law firm Baker McKenzie wrote in an update.

Rigi offers the likes of tax and customs benefits for projects requiring investment of US$200 million or more. Rigi is part of the framework economic reform law, known as Ley Bases, which was approved in June. 

Secondary legislation guiding the implementation of Rigi was due to be published on Wednesday, President Javier Milei said in a post on social media platform X. Milei said US$50 billion in investment had been confirmed.

Among jurisdictions that have adhered are mining provinces Jujuy and San Juan. In terms of midstream hydrocarbons, Río Negro province – where an oil terminal and LNG plant are planned – is expected to become a significant player and Rigi beneficiary.

Buenos Aires city, municipalities and the provinces are invited to adhere. Projects have up to two years to adhere and have to deploy, within two years, at least 40% of the minimum investment agreed. Adhesion may result in the reduction of some local government autonomy.

Río Negro province blazed the trail in July, quickly passing associated legislation. 

Jujuy province voted in favor of adhesion this month.

Mendoza province also greenlit an adhesion bill this month.

San Juan province is another jurisdiction that voted for adhesion this month.

Chubut province is the fifth, last week greenlighting a bill but maintaining a prohibition on open pit mining and the use of cyanide. In 2021, following violent protests, Chubut repealed a zoning law that critics alleged would have opened the door for megaprojects. 

Other developments

The lower house of mining jurisdiction Salta passed draft Rigi adhesion legislation along with a royalty bill, authorizing, for new projects, an increase to 5% from 3% at the pit head. The draft legislation goes to the senate for debate, Baker McKenzie said.

Along with the provinces, the municipal government of port city Mar del Plata has also issued an associated adhesion decree. The city sees potential investment related to offshore hydrocarbons exploration and production. 

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