Mining investment adds competitiveness in Argentina thanks to a significant reduction in taxes
The Investment Incentive Regime for Large-Scale Projects (RIGI) represents a key opportunity for the development of Argentina's mining sector, offering tax benefits such as a corporate income tax reduction from 35% to 25%, exemption from import duties on capital goods, and the ability to adjust losses for inflation. Additionally, it guarantees fiscal and exchange rate stability for 30 years, providing predictability for investors. These conditions have attracted major international companies like BHP and Rio Tinto, which have announced investments in strategic copper and lithium projects in Argentina. Thanks to this reduction in the average effective tax rate from 47% to 38%, Argentina?s mining sector has become more competitive than those of Chile and Peru.
According to a report by CRU Consulting, ?this transformative potential depends on long-term stability to attract investments and develop local capabilities for major copper mining projects, a challenge faced by both mining companies and governments.? CRU also estimated that Argentina?s cash flow will grow during the construction of copper mines, driven by high investment in Host Country Cash Flow (HCCF). This component will be the most significant until 2029. Once the mines enter production, tax revenues and HCCF investment will rise, making these factors the most relevant from 2030 onward.
The impact of RIGI is also reflected in regional economic development, with provinces like Salta, Jujuy, and Catamarca as the main beneficiaries. Investments attracted by this new regime are expected to create thousands of jobs and improve local infrastructure, strengthening the global competitiveness of Argentina?s mining industry. With export projections reaching up to $10 billion by 2027, RIGI is shaping up to be a key tool for the sector?s growth and foreign capital attraction. At Bluemoon Group, we are also committed to the future, supporting long-term planning and investment attraction while strengthening local capabilities and making our partners' and clients' major mining projects a reality.