Business News Americas cited Ms Irenea Renuncio senior Latin America analyst of Maplecroft as saying that Argentina is a high risk destination for mining companies and is becoming increasingly more so due to the deteriorating business environment.
Ms Renuncio however, said that of greatest concern, is a growing trend of environmental activism from a mobilized population that is ready to protest against mining projects in the country.
She said that "In overall terms, the fact that the business environment is deteriorating is also bad news for the mining industry, but of most concern is environmental-related activism against mining activities in Argentina."
She added that companies operating in the country also face cash flow difficulties as a result of the tight foreign currency and import restrictions the government has implemented. Furthermore, inflationary pressures, both on the labor and supply fronts, have made it increasingly costly for companies to do business in Argentina.
