 
Argentina has newfound economic stability and has all the characteristics of a mineral-rich country providing great potential within the mining sector while offering substantial opportunity for foreign investment.
Argentina is rapidly becoming one of Latin America's major copper and gold producers, posting remarkable increases in production over the past 3-years. Gold, copper and silver production is set to increase with Argentina historically being major producers of industrial minerals and construction materials, which contributed 66% of earnings, and metalliferous minerals only 24%. This trend will likely reverse due to the development of three new gold and base metal mining ventures in the country. The majority of Argentina's mineral production is concentrated along the Andean Cordillera, including nine provinces: Buenos Aires 30%, Cordoba 14%, Entre Rios 8%, Jujuy 8%, San Juan 7%, San Luis 6%, Mendoza 4%, Chubut 3% and Catamarca 3%.
The government has enacted a new, minerals and mining legislation, and regulatory structure that provides a number of benefits and tax regimes guaranteed to remain stable for 30 years. Only 20 percent of its territory has been surveyed for possible exploitation, which is lending to increased exploration and foreign investment.
The exploration boom that Argentina has been experiencing has resulted in the development of several new mining ventures. Probably the most important is the cross border development of the massive Pascua - Lama deposit with Chile. A recent agreement will truly open up this region to development. Continuing infrastructure upgrades has made several parts of Argentina more accessible, in particular the western parts along the Andean mountains.
Argentina: Untapped Mineral Wealth
Argentina is about to become a mining powerhouse. The country, one-third the size of the continental U.S., is South America's second largest country after Brazil. It has a strong manufacturing base, self-sufficiency in many key consumer goods and a well-educated population, largely of European descent. Although the country's western frontier along the Andean mountain chain has the same geology as its neighbor, Chile, one of the world's mining hot spots, Argentina's mineral wealth has long remained largely unexplored and its mining industry relatively undeveloped. The country's mining industry has traditionally contributed less than 0.5% to Argentina's GNP. One of the main reasons was the lack of foreign investment due to restrictions on foreign ownership of mining properties. However, most of these restrictions have been lifted, setting the stage for a mining boom that will open up Argentina's untapped mineral wealth.
Safeguards for Investment
New legislation providing legal and economic safeguards for foreign investors are supporting a dramatic expansion of Argentina's mining industry. These regulatory changes include:
- Allowing foreign companies, without limitation, to be exclusive owners of mining properties.
- A stable tax rate that lasts for 30 years following the submission of a feasibility study to the Secretary of Mines.
- Financial inducements for mining investors.
- Uniform application of new mining laws.
The Start of a Mining Boom
The regulatory changes have had an immediate and wide-ranging impact on the Argentine mining industry. Foreign investment — and exploration activity — have expanded dramatically. The mining industry — now the fifth largest in the world — has already doubled in size and now accounts for 1.0% of Argentine GNP. The country is rapidly becoming one of Latin America's leading copper and gold producers. Traditionally, most of Argentina's mineral production has been concentrated in the west, along the Andean mountain range that the country shares with Chile. Argentina's mineral-rich western provinces of Mendoza, San Juan, San Luis and La Rioja are doing even more to encourage development and have eliminated the mining royalty to a zero royalty base.
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