Political Risk Latin America Blog @PolRiskLatam

Argentina’s Gold Mining Boom To Continue Despite Glacier Law

Posted in News and Articles, Political Risk by politicalrisklatam on October 4, 2010

by Shane Romig of Dow Jones Newswires for Nasdaq,  October 4th, 2010.

Argentina’s gold mining boom should suffer little from a sweeping glacier protection bill approved by Congress on Thursday, since most large mine projects are far from areas subject to stiff restrictions.

“From my understanding, few to none fall within proximity” of glaciers, said Christopher Ecclestone at Hallgarten & Company, a financial advisory firm with a focus on mining companies in the region.

Argentina’s Senate passed a sweeping glacier protection bill early Thursday morning that was strongly opposed by the mining industry because it puts a broad swath of Argentina’s mountains off-limits to mineral exploration and development.

The bill, which President Cristina Fernandez has indicated that she will sign into law, will limit economic activity in the areas adjacent to glaciers and give the federal government the job of identifying and protecting the country’s glaciers.

Argentina’s gold mining industry has started to attract significant investment thanks to the steady rise in gold prices as investors flock to the safe haven because of volatility in financial markets and as a hedge against inflation. Gold for December delivery dipped 0.1% to close at $1,309 on Thursday. (continue reading… )

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