Mining 2025

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

Test in connection with not distorting the FX market and Central Bank reserves The application should include a sworn state - ment declaring that the Single Project does not distort the local FX market, all based on the information submitted in the application about foreign currency balance (both for the first three years of being admitted into RIGI and for the life of the Project), sources of financing (local or for - eign), financing schedule, production and export estimates and schedule thereof, whether funds will be brought or not through the FX official mar - ket, and whether the SPV will use the FX benefit included in Section 198 of Law 27,742, which gradually releases the exporter from the obliga - tion to bring into Argentina the export proceeds and trade them into local currency at the official exchange rates. 20% of budget designated to hiring of goods and works must be allocated to local suppliers – report about direct and indirect employment that the project will generate 20% of the budget designated to hiring goods and works must be allocated to local suppliers. This needs to be evidenced every two years. There is also an obligation to report direct and indirect employment and percentage of local employees with residence or domicile in Argen - tina. Evaluation and Approval of the Application Once the application is submitted, its evaluation by the Governing Authority is subject to a man - datory period of 45 calendar days from the date the submission is complete. Additional informa - tion may be requested. The approval or rejection by the Governing Authority will not be discretionary.

the net present value of the capital investments projected for those same three years does not exceed 30%. Technical feasibility – permits In terms of evidencing technical feasibility, the following must be described: Description of the permits and authorisations obtained by the SPV in charge of the project that are necessary for the development of the investment plan, as well as those pending acquisition, with proof of submission, status of the process, and its approximate date of acquisition. For the purpose of the submission, in terms of relevant permits not yet granted, it is always better to show that those have been applied as opposed to those cases where the submission or filing requesting the permit has not yet been filed. In the case of PEELPs (not regular RIGIs) the regulation sets a rule where the requirement to evidence techni - cal feasibility by describing the permits granted and those still pending, is considered to be ful - filled when providing the information in connec - tion with the first stage of the PEELP (again in the case of PEELPs, stages are designed by the applicant). Financial and economic feasibility A sworn statement about the economic and financial feasibility of the project must be sub - mitted. An economic and financial report by an independent evaluator also needs to be submit - ted. Test in connection with not affecting competition This test is covered by a sworn statement based on an independent study executed by lawyer or expert in economy specialised in competition or anti-monopoly legislation evidencing that the local competition market would not be affected by the Single Project.

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