BNamericas cited Mr Rob McEwen CEO of Toronto based McEwen Mining as saying that government policies are causing mining companies to put off investment in Argentina in favor of friendlier jurisdictions. Over the past several months, mining companies operating in Argentina have been affected by import and currency restrictions imposed by the government.
Mr Rob McEwen said that "I am certain the actions by the government have caused a number of exploration and mining companies to defer making investments in Argentina. Mexico is looking much more mining friendly at this time."
Earlier this month, Mr Geoff Burns CEO of Vancouver based Pan American Silver said that import restrictions had had a devastating impact on equipment maintenance at its Manantial Espejo silver mine in Argentina with spare part deliveries delayed. As a result, waste material had built up contributing to a 23% YoY fall in production to 858,000 oz in the Q3 of 2012.
Mr Burns said that despite the challenges, McEwen will continue to advance its assets in the country using profits from its 49% owned San José silver-gold mine. For companies such as ours with multiple projects in the country we continue to invest to build the value of our assets in Argentina.
However, last week McEwen confirmed that the company is considering a full or part sale of its Los Azules copper deposit in San Juan province, Argentina along with other options including JV with a larger company suited to developing such a large asset. Proceeds from any future sale would be used to develop the El Gallo Phase II gold and silver project in Mexico's Sinaloa state and the Gold Bar project in Nevada US.
