BUENOS AIRES (Reuters) - Argentina's mining sector is set to receive $20 billion in new investments over the next five years, as the new center-right government creates a more business-friendly environment, the head of the local mining chamber said on Tuesday.
Since taking office late last year, free-markets proponent President Mauricio Macri has ditched trade and currency controls, including a 5 percent tax on mining exports, applied by his leftist predecessor, Cristina Fernandez.
The forecast came from a detailed study of the country's mining potential, stemming from improvements in productivity generated by the tax changes, said Marcelo Alvarez, president of the CAEM mining industry chamber.
Some companies have already announced their interest in investing.
Most of the investment, some $14.6 billion, will be carried out between 2018 and 2020 to develop projects controlled by Glencore (L:GLEN), First Quantum (TO:FM), Yamana Gold (TO:YRI), McEwen Mining (TO:MAQ) and Pan American Silver (TO:PAA), among others, according to CAEM.
Argentina's mining exports are seen reaching $25 billion through 2021, said Alvarez.