The upcoming Argentinian election in October will play a role in deciding the future of the country’s resources industry — not in its viability, but in where the money for investment will be coming from.
Senior Director at Americas Market Intelligence (AMI) Remi Piet said that the mining sector was supported by both sides of Argentinian politics because of the sector’s capacity to generate US dollars, and the outcome of the decision between incumbent president Mauricio Macri and the opposition ticket, which includes former president Cristina Fernández de Kirchner, will be about where the majority of financing for projects there will come from.
“(Local capital) will actually step in if Macri is re-elected; if its Cristina Fernández de Kirchner, it’s likely to see more and stronger presence from Chinese investors rather than traditional western investors.”
The difference between the two sides of Argentinian politics comes in when it comes to financing of resource development, said Piet, who opined that corruption and transparency were having an impact on the industry.
“The entire government (of Mauricio Macri) has been very vocal and present in trying to promote internationally mining in Argentina. That’s something that’s in line with also what Cristina Kirchner was doing,” said Piet. He explained that Macri had worked to lessen red tape and develop the oil and gas industry, while Kirchner had deep roots in the Santa Cruz province, which depends on its rich natural resources industry.
In the interview, which you can listen to above, Piet also touched on the result of the constitutional ruling on a local referendum opposing mining in Ecuador. He spoke about this in a previous chat with INN as well.
Argentina’s election isn’t the only one coming up in Latin America; Bolivia will soon have an election, which Piet also shared his thoughts on, as incumbent president Evo Morales ekes out a lead in polling there.
Listen to the interview for more comprehensive thoughts from Piet, who will return for another chat later in July.