MENDOZA A NEW OPORTUNITY FOR MINING IN

ARGENTINA (?)
 MENDOZA HIGHLIGHTS

• Mendoza is the 4 biggest province of Argentina 149,000 km2 , with a population

os 1,800,000 98% of alfabetism, and 30% of university graduates.

• Mendoza is recognize for the quality of its wine, but is also the 3rd oil producer of
the country with the second biggest refinery of Argentina.

• Mendoza has a diversified economy, with the biggest industrial and service
cluster of the west of Argentina.

• Mendoza is the Province with the smallest proportion of public employment, has
fiscal superhabit and is investing more tan 10% of its Public Budget in
infraestructure.

• Mendoza is one of the best destinies for investments in Argentina.

• In the more tan 500 km of Andes that Mendoza shares with Chile, Chile produce
and exports more tan USS10,000 Millions of mining prouducts.

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 A FACT

According the Fraser Institute, Mendoza is the second

worst destiny for mining investment.

Despite off NO mining in Mendoza.

 A VALID QUESTION

Why are we here?....

 A PIECE OF RECENT HISTORY

• By 2000, Mendoza had the biggest mining service cluster of Argentina based on
its industry, the international connections, and human resources. Part of this
base is stil there, providing services to thre rest of the región.

• 2004/2005, anti Mining movements started in Chubut spreading quickly to

Mendoza obtaining in 2006 the approval of Law 7722 (CN , H2SO4)

• In 2011 was started the construction of Potasio Rio Colorado Project (Malargüe)
with an initial investment of USS 6,000 MM. In 2013 after investing USS 2,000
MM the projects was stopped because a combination of Nation, Province and
Investor strategy mistakes and a change in market conditions.

• In 2014 some projects fail in getting the enviromental permits mainly by the lack
of a consistent mining policy and political speculation.

• Potasio Rio Colorado has been redesigned under the optics of the National and
Provincial Minig Policy and, with a optimized project is waiting for its market
oportunity. Projects with failed enviromental process are being redirected.

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 HOW TO RESOLVE THIS SITUATION?

• The strategy of the Government was to attend first the reason for social opposition
using objetive information, open debate and trasparency in the process. “Espacio
de Dialogo”;

• More than 70 conferences in 3 different universities, 1000+ people participating;

• Visits to different sites with pro and anti minig opinión;

• The result was the “Policy for Development Sustainable Mining in Mendoza”
presented in 2017;

• Strong support form the economics/productive sectors;

• Program to develop Mining in Malargüe;

Show results in one place, expand the concept to the rest of the
Province.
 MOVE FROM HERE

• Prohibition of using • Corruption

CN, H2SO4 • Limits to water
• Political meddling acces
Uncertain
• Bureaucracy
Legal and
Political Frame

• Polution
• Corruption • Untapped
resources
• Lack of Control
• CU
• Abuse of local Threat Unknown
comunities • Potash
Geological
Social Perception Potential • Uranium
• No positive
outcomes in the • Gold
long term.
• Etc.
 TO HERE

INFORMATION

Legal and
Political Frame

Oportunity
Social Potential
Perception

TRANSPARENCY DEBATE
 WAHT WE FOUND?
We found a positive combination of these factors in Malargüe
MALARGÜE
• Malargüe is the biggest territory of Mendoza
with more tan 41,000 km2 (bigger tan
Swuitzerland).

• Malargüe is the main oil producer of the

Province (3rd in he Country) and already
working with non conventional oil (30% of
“Vaca Muerta”)

• Malargüe has historically supported the

mining acivity and has not any other
economical activity that could feel thretened
by minig industry.

• Malargüe together with the National and

Provincial Government are working to develop
its own Territorial Planing including Oil,
Energy and Mining as the main axes of
development.
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 WHAT WE CAN DO?

• Malargüe use to be a mining district until the ´70 when ming was outperformed
by Oil.

• Malargüe has a direct connection with Chile trough Pehuenche Pass.

• Malargüe shares with Chile the ¨Miocene Copper Belt¨ wich contains the richest
and biggest cupper depossits of the región most of them compatible with the
limitations of the Law 7722.

• Most of this deposits are located out from the “periglaciar” regions (below
3200 m high), reducing risk for enviromental assestment.

• The region has also important deposits of Iron, Gold, Uranium, Zinc, some of this
potential is for now limitated by the legal frame wich not allow the use of CN,
H2SO4.

• There are several projects that can be developed because they combine the
characteristics of having geological potential, are located in a mining friendly
región, can be developed according the limitations of the law.

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MALARGÜE
Hierro Indio

PRC

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 SOME POTENTIAL TARJETS IN MALARGÜE

• Hierro Indio. Fe3O4; in production until 1972, high quality known reserves;

• P. Rio Colorado; Potash, under construction, world class reserves;

• El Perdido . Cu and Au Porphiry; Intermediate Exploration;

• Co Amarillo. Cu Porphiry; Intermediate Exploration;

• Tango. Cu Porphiry; Intermediate Exploration;

• El Seguro. Cu and Au Porphiry; Binacional; Intermediate Exploration;

• Qda Amarilla. Cu Porphiry; Binational; Initial Exploration;

• Las Choicas. Cu Mantle deposit; Advanced Exploration;(needs CN, can

be processed in Chile);

• Elisa. Cu Mantle deposit, Grassroot Exploration; (needs CN, can

be processed in Chile);

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 CONCLUSIONS

There is an oportunity for mining in Mendoza.

• The activity re-starts in the Malargüe región because its unique combination of
geological potential, social aceptance and government support.

• National, Provintial and regional Government are working to provide an

adequate environment for business.

• There are several projects in different degree of development that need

investment to fully develops.

• There are some projects already aproved that are waiting for proper market
conditions to restart operations.

• The oils industry is very strong provinding a base of services, man power and
infraetsructure.

Looking foward to see you there

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THANKS FOR YOUR ATENTION

Emilio Guiñazú Fader

Under Secretary of Energy and Mining
ejguinazu@mendoza.gov.ar
+54 261 4492867