Mining in Argentina – July: Metals Prices suggest an increase in the mining industry, encouraging to invest in Argentina
Strong upturn in minerals and metals commodities was one of the key factors during last month. Macroeconomic situation –geopolitics, global economy- in combination with microeonomic –increasing demand and a laggish supply- is developing a strong scenario for the short term. Several analysts and organizations conclude that 2017 is the turning point, and next year will see a deficit in mineral supply.
During July, Argentina experienced good news. On one side, the definitive normal leaching operations at Veladero mine (Barrick and Shandong Gold JV), also as good operating performance at Gualcamayo (Yamana Gold) show that Argentina has an excellent present –and a better future- in all related to precious metals. In this way, Yamana continues with the construction of Cerro Moro (gold and silver), and announced its intention to analyse the viability of a potential underground mine at Agua Rica (copper and gold). And Barrick intends to publish a Prefeasibility Study of a possible underground operation in Lama (the Argentine side of Pascua-Lama) before yearend.
Argentina is consolidating its position as one of the top destinies for lithium investments. With two operating centres and one in construction (Salar del Rincon), there is also an interesting pipeline of several projects in different development stages. These includes Cauchari-Olaroz, a JV between Lithium Americas and SQM, where strategic partners coming from Asia give support by financing the development of a project that should come in production by 2019. Other names like Millennial Lithium, Neo Lithium and Liberty One join other companies in order to fast track development.