“It’s important to bring reasonableness to attract investment”

The manager emphasized Argentina’s geological potential regarding metal deposits and local professionals training. Still, he calls for more guarantees to encourage risk investments.

According to Jaime Bergé, president of Cámara Minera de San Juan, Argentina is “an extremely attractive country” from the viewpoint of mining. “Nature helps because there are really good geological prospects reflecting the existence of large deposits,” he told El Inversor Energético & Minero. In his view, however, “there are still many areas to be explored. For example, in San Juan there are about 20 projects, of which seven or eight are well-located and at an advanced exploration stage.”

“Mining products foreign sales will exceed US$ 10,000 million in 2015 and will probably reach 18,000 million by 2025,” he said. San Juan’s exports jump in the short term is related to the opening of Barrick’s Lama-Pascua, the first bi-national project, which will start operations in 2014.

According to Bergé, apart from Lama-Pascua –which envisages the exploitation of a gold deposit on Chilean border– San Juan in the next five years will have three other large mines, such as Los Azules, Altar and Pachón.

“The first two have yet to go through a significant exploration path. Pachón, however, which is owned by Xstrata Copper (owner of Bajo la Alumbrera), must submit its environmental impact report in order to start the mine construction,” said the president of Cámara Minera de San Juan.

Still, the manager noted the need of improving some issues related to the sector’s regulatory framework to encourage risk investment. “The national government would have to implement a reasonable policy, i.e., find a formula allowing investment. I still believe that Argentina has a bright mining future. Within 25 or 30 years mining exports would have to surpass agricultural exports,” said Bergé. “There is a huge perspective, if things happen in a reasonable way. That framework should be found,” he added.

What worries you about the regulatory framework?

For example, I agree with promoting a process of import substitution, as part of a strategy. I agree with a lot of things that are good for the country, but I also think that it’s important to bring reasonableness to attract investment. In that sense, it is not good to change the sector rules.

How is the exploratory campaign in San Juan performing?

There is activity. Clearly, most investors think: “We will not leave Argentina.” Projects such as Altar and Los Azules keep on moving forward, although this year they have probably opened their exploration camps a bit later. Then, a little further back, there come other ventures as José María, back there in the north. Las Ortigas y Río Cenicero have also had good progress in the last three or four years. These are three gold projects. San Juan has that feature: all the north is gold and the south is mostly copper.