Mining companies targeted in Argentine import crackdown
May 29 , 2012
The Argentine government has tightened controls on imports of equipment and supplies by mining companies in an effort to boost trade surplus and foreign currency stocks.
Mining companies operating in the South American nation, including Xstrata and AngloGold Ashanti, will now have to obtain prior approval for overseas purchases and submit import plans 120 days in advance.
They will also have to consider swapping imports for locally produced goods.
The move could increase uncertainty amongst companies looking to invest in Latin America’s third largest economy.
Compared with neighbouring Chile or Peru, Argentina's mining industry is largely undeveloped with overall investment reaching a record $2.6 billion last year.