Mining 2025

ARGENTINA Law and Practice Contributed by: Sebastián P. Vedoya, Sergio Arbeleche and Dolores Cattaneo, Bruchou & Funes de Rioja

1. Mining Law: General Framework 1.1 Main Features of the Mining Industry With the huge, unexplored mining potential and the geological fact that it shares the Andean mountain chain with Chile (with two-thirds with - in Argentine territory and with topography that facilitates access and building of infrastructure), Argentina remains as one of the most interest - ing destinations regarding mining investments (especially within certain Argentine provinces with very clear pro-mining policies and culture). There are several exploration projects that are very close to achieving feasibility. There is also a large number of prospects that have shown good results in exploration. The price of Argentinean mining assets is low in comparison to similar assets located in other parts of the world. To add to this, Argentina’s democratic and federal constitutional system has continued in stability for more than 30 years, despite periods of political and economic crisis. The mining legal regime is solid and stable, awarding strong rights to owners of mining concessions. Mining exploitation concessions have perpetual duration and mining activity is considered to be of public interest, meaning that its development has priority over other activities that may be developed in the same area, except for public services. There is a general prohibition by the state to conduct exploitation activities on its own. There is also a promotional regime for the min - ing industry that grants a 30-year tax stability for new or for expansions of existing mines, among other benefits (pursuant to Mining Investment Law). All provinces have adhered to this regime. There is also a new promotional Regime under Law 27,742 referred to as RIGI (Incentive Regime

for Large Investments), which aims to generate incentives for Large and Long-Term Investments (including mining, among other sectors), solving for projects that qualify under such regime many of the problems that investors where expecting Argentina to overcome in connection with reduc - ing tax burden, limiting the sort of restrictions for outflows and inflows of funds that Central Bank may impose, granting stronger stability and swift access to international arbitration. In general, there are no conflicts with indigenous communities in areas where mineral resources are located; however, it should be noted that obtaining a social licence requires more engage - ment than before and has gradually increasing standards that have to be met, which is fur - ther reflected in the legislation issued by some provinces in recent years. Also, a few provinces have in force regulations banning certain meth - odologies of mining (open pit, use of cyanide) or establishing zones within their territories where mining is restricted. 1.2 Legal System and Sources of Mining Law Argentina is a federal country and a civil law jurisdiction. In addition to general corporate, labour, regula - tory and tax rules that are generally applicable to all industries in Argentina, the main legal rules regulating the mining industry arise from the fol - lowing statutes: • the federal constitution; • the Mining Treaty between Argentina and Chile; • the Federal Mining Code (FMC); • Law 24,585 (specific environmental title for mining included in the FMC);

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