Mining 2025

ARGENTINA Trends and Developments Contributed by: Sergio D. Arbeleche and Sebastián P. Vedoya, Bruchou & Funes de Rioja

Potential Beneficiaries and Target Sectors RIGI beneficiaries are not the projects them - selves, but the “Single Project Vehicles” (SPVs) holding and in charge of a project. These SPVs are legal entities (corporations and/or single- member companies, limited liability companies, dedicated branches, and business associations (UTEs), holders of one or more stages of a pro - ject with a single purpose of investment and development in certain specific sectors (mining, energy, oil and gas, technology, infrastructure, tourism, forestry, and the iron and steel industry), that meet the requirements and adhere to the RIGI in relation to a “Large Investment”. There are three types of SPV beneficiaries. • Regular RIGI – those investment projects that do not qualify as LTSEPs that have access to almost all of the incentives under RIGI. • PEELP RIGI (SPV with Long-Term Strategic Export Projects (PEELP) – special type of beneficiary with some improvements in terms of incentives: (a) projects that can position Argentina as a long-term supplier for global markets in which Argentina does not currently par - ticipate as a relevant player; (b) minimum investment amount of USD2 million (that can be fulfilled with 20% of such amount within the first two years of being admitted to RIGI); and (c) involving multiple stages (at least two consecutive stages) of capital disburse - ment of USD1 million each (temporal length of each stage to be defined by the applicant). • The suppliers of an SPV which import goods can register with the RIGI exclusively in con - nection with the incentive of tax-free imports for goods and inputs destined for a RIGI SPV.

The RIGI is declared to be operative, and exer - cise of rights cannot be denied due to lack of regulation. The RIGI regime in the Law is very detailed and descriptive, thus avoiding risk of being altered or distorted at the regulatory level. A high hierarchy authority (Minister of Economy) is the competent authority in charge of applying, controlling and enforcing RIGI. Incentives arising from RIGI can be summarised under four pillars: • a reduction of the total tax burden at the federal level; • a limitation on the sort of foreign exchange restrictions that the Central Bank may impose on inflows and outflows of funds; • a solid stability which allows for 30 years not to pay new or higher taxes than the ones included in the RIGI and provides for FX protection included under RIGI for that same term; • remedies set out penalties for public officers that breach the regime and there is immedi - ate access to international arbitration after 60 days, without the need for prior litigation in Argentina. Main Goals RIGI’s main goal is to attract large, long-term investments, and it is proposed to create a regime that offers incentives, ensures legal sta - bility, reduces the federal tax burden, eliminates foreign exchange regulations and restrictions, guarantees stability, and allows access to inter - national arbitration processes.

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