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Released August 12, 2024 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Argentine government of Javier Milei has introduced the Regimen de Incentivo para las Grandes Inversiones (RIGI) program, which aims to attract investments for development in the nation and offer incentives to companies. The targeted sectors include forestry, tourism, infrastructure, mining, technology, steel, energy and oil and gas.
Mining, oil and gas are expected to attract significant attention given Argentina's shale reserves in Vaca Muerta and considerable lithium and copper resources.
In recent times, mining companies have increasingly looked to Argentina for developments in lithium and copper, with the nation seeking to become a significant market player.
For mining, the minimum investment required for projects to join RIGI will be US$200 million, while for oil and gas, it varies depending on the segment. For oil and gas production and exports, minimum project investments will need to be US$600 million or higher; for transport and storage investments start at US$300 million; and for refining, processing, and petrochemicals, US$200 million.
At least 40% of the projects' capital must be disbursed in the first two years to be considered for RIGI incentives, and companies must apply to join the program by August 2026.
Among the benefits included in RIGI are an income tax reduction from 35% to 25%, an exemption from import duties and fiscal stability for 30 years.
Given Argentina's federal system, its provinces will have to decide whether to adhere to the new program. Certain provinces could attract major investments and companies to provinces that use the RIGI system.
According to El Cronista, the lithium- and copper-rich provinces of San Juan and Jujuy have already approved RIGI, while other mining-rich provinces like Salta are waiting for legislative approval. When it comes to oil- and gas-rich provinces, Neuquen is still in discussions, while Rio Negro has approved RIGI. Vaca Muerta, one of the world's largest shale reservoirs, is primarily located in the Neuquen province.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Mining, oil and gas are expected to attract significant attention given Argentina's shale reserves in Vaca Muerta and considerable lithium and copper resources.
In recent times, mining companies have increasingly looked to Argentina for developments in lithium and copper, with the nation seeking to become a significant market player.
For mining, the minimum investment required for projects to join RIGI will be US$200 million, while for oil and gas, it varies depending on the segment. For oil and gas production and exports, minimum project investments will need to be US$600 million or higher; for transport and storage investments start at US$300 million; and for refining, processing, and petrochemicals, US$200 million.
At least 40% of the projects' capital must be disbursed in the first two years to be considered for RIGI incentives, and companies must apply to join the program by August 2026.
Among the benefits included in RIGI are an income tax reduction from 35% to 25%, an exemption from import duties and fiscal stability for 30 years.
Given Argentina's federal system, its provinces will have to decide whether to adhere to the new program. Certain provinces could attract major investments and companies to provinces that use the RIGI system.
According to El Cronista, the lithium- and copper-rich provinces of San Juan and Jujuy have already approved RIGI, while other mining-rich provinces like Salta are waiting for legislative approval. When it comes to oil- and gas-rich provinces, Neuquen is still in discussions, while Rio Negro has approved RIGI. Vaca Muerta, one of the world's largest shale reservoirs, is primarily located in the Neuquen province.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
