What are the changes to the Mining Code proposed by the Government
Without modifications since its creation in 1945, the objective of the official project is to update the Code of Mining Procedures, with the purpose of modernize, streamline and provide greater controls to the activity in the province. Furthermore, it provides for a more active participation of local communities in the development of its natural resources.
The standard also grants a preferential role to the state company Impulsa Mendoza for the liberated areas with mining rightssince it will have priority to define whether it participates in their exploitation/exploration, and calls for a public tender to award them.
While progressing in use of tools that did not exist in the last century, such as the electronic file and consultation; reinforces the police role of the Mining Directorate; and covers the so-called “first, second and third category mining (quarries)”, in line with international standards; among other issues.
As stated in the rationale, the initiative is based “on the imperative need to optimize the administration of mining resources, as well as make transparent and modernize the procedures related to the registration or mining concession”, among other points.
What’s coming
After the enactment of this law, it is expected that the Executive Branch will send to the Legislature the other initiative announced by Cornejo: the creation of “Malargüe Western Mining District” (MDMO).
This covers an area of more than 20,000 square km, where there are more than 240 surveyed areas, with copper (mainly), gold and uranium. The key is to move forward with stronger steps in an area where there is a social license for mining.
Specifically, it is an initiative that tends to unify the evaluation of mining exploration projects in a certain area of Malargüe, where there is enormous mining potential.
In general terms, the department of South Mendoza It has more than 200 mining permits which, grouped into individual projects, will be able to undergo a single administrative management and thus seek to streamline processes, without eliminating legislative ratification.
Copper potential
In the case of Mendoza, it is worth remembering that it began drilling in the Cerro Amarillo copper project, in Malargüe, after more than ten years without metal mining activity. Furthermore, it already has legislative approval to start Exploratory activities in the El Burrero, Las Choicas and La Adriana deposits, in order to reactivate them. The three deposits belong to the company Geometales, and two of them (El Burrero and Las Choicas) have the Environmental Impact Declaration (DIA) for exploration. Meanwhile, the San Jorge deposit, in Uspallata, is not in the plans yet.
It is one of the strategic resources due to its high projected global demand for electromobility, renewable energies and the electronics industry.
Copper mining can provide the country with investments of US$25,000 million and an exponential jump in its exports towards the end of the decade that would allow it to reach US$10 billion annually.
It must be remembered that with the closure of the Bajo de la Alumbrera mine, in Catamarca, The country celebrates six years without copper production and exports.
Salta, Catamarca and San Juan have the most advanced projects in the country: Los Azules, Taca Taca, Mara, Josemaría, Filo del Sol, Altar and Pachón.
San Juan leads exploration investments in Argentina with five of the most advanced fields for the start of construction and production. It is about the Josemaría projectsthe most advanced with early works and waiting for the start date of construction; El Pachónwhich is going through the feasibility stage, The altarin advanced exploration, The Bluesin preliminary economic study and Edge of the Sunwhich is in the pre-feasibility stage.
In Catamarca, the Minera project Alumbrera Rich Water (Mara), advanced to the pre-feasibility stage. In Jump the Taca Taca mine It is under preliminary economic study.
