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Mining in Argentina 2009: After the storm, is the outlook positive?
In spite of the global crisis, Argentina continues to crystallize projects and mines of significant importance, further enhancing an already dynamic sector.
It is true that the crisis precipitated the exit of a good number of companies with projects in exploration –both grass roots and advanced- but the vast majority owe their withdrawal to other reasons. For example, Alexander Gold had already decided to stop their Leon project months before; they now are only maintaining the property and focusing on the development of their processing technology Metaleach. ATW Venture (now ATW Gold) completed two drilling programs between 2007 and 2008 in the Amarillo project, owned by Marifil Mines, and after not being able to find what they intended, they decided to leave the country to focus on their newly acquired gold mine, now already in production. Most of the over 130 companies still active in Argentina have reduced their activities drastically, but with interest in maintaining their assets and weather the storm. It is hardly surprising that in an environment mostly populated by junior companies, the sector has a high mobility in any economic situation.
Even though current market conditions are harder, there are still funds available for exploration. A particular event in the Argentinean mining sector proves this: the biggest IPO of the year reached USD 100 M, by Magma Energy, a company focused on geothermal exploration. Where is the relationship between Magma and Argentina? Magma’s CEO is the mining mogul Ross Beaty, also Chairman of Pan American Silver, operator of the Manantial Espejo silver-gold mine located in Santa Cruz. And Magma also has geothermal interests in Argentina, Chile and other ... |
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