Regarding the treatment of the Bases law and the fiscal package in the national Senate that kept the country in suspense last Wednesday and Thursday, the mining sector was especially interested in two points: what was going to happen with the Large Investment Incentive Regime (RIGI ) and how the mining royalty charges were going to be.
Finally, in approving the two projects, the Upper House made changes to the RIGI and royalties, which is a tax received by the provinces. They must now be reviewed again by Deputies.
Regarding the RIGI, on which, for example, the Taca Taca copper project in Salta depends for its development, the base amount for investments was maintained at US$200 million and article 165 was modified so that it only covers the activities of forest industry, infrastructure, mining, energy, technology, tourism, oil and gas and steel.
Meanwhile, “at least 20% of the entire investment amount” was available for local suppliers, as long as “the offer is available and under market conditions in terms of price and quality.” Said minimum percentage must be maintained during the construction and operation stages.
Another tweak was in article 196, on exchange incentives, which limits the obligation of settlement in the exchange market to the foreign currencies received from exports of products generated by the projects. It will be 20% after two years of starting the investment; 40%, after three years; and 100%, from four years old.
Provincial competition
Regarding mining royalties, which are within the fiscal package of laws, the national Senate reversed what had been established in the Deputies by raising them from 3% to 5%. But this percentage applies to mines that are already in production or are in the construction phase at the time the law is enacted.
For new projects, the provinces will be authorized to charge up to 5% on the “head of mine” value of the extracted mineral.
