Argentina's Milei Picks Up Trump's Support for Mining Projects

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina's President Javier Milei met with U.S. President Donald Trump and U.S. Treasury Secretary Scott Bessent in New York on September 23. The meeting aims to strengthen Argentina's international support and secure backing for the economic reforms proposed in Buenos Aires.

On X, Bessent said that "all options for stabilization are on the table" to support Argentina in its economic reforms, including "swap lines, direct currency purchases, and purchases of U.S. dollar-denominated government debt."

During the meeting, Trump said that he "endorsed" his Argentine counterpart and that the U.S. is "backing him 100%." However, no details about the support were offered during the encounter.

This backing for the Argentine president comes at a significant point in his term. After taking office in 2023, the government's right-wing libertarian policies, characterized by public investment cuts and austerity, have contributed to reducing hyperinflation.

However, these controls on inflation led to drops on the peso's value. The collapse of the peso intensified following the landslide defeat of Milei's party in the Buenos Aires elections on September 7 to the Peronist party, as well as reports of corruption scandals involving the president's circle.

Consequently, Argentina's bonds have suffered as confidence in Milei's government weakens ahead of October's legislative midterm elections, potentially reducing support for the administration in the Chamber of Deputies and the Senate.

Milei is one of Trump's few close allies in the region, and U.S. financial support for Argentina could throw Milei a lifeline ahead of the October contest. As a result of Bessent's statement, markets rallied in favor of the peso with the hopes that Washington's backing could help stabilize Argentina's economic situation and garner support for Milei in the elections.

Milei's government has been a steadfast supporter of private investments and projects, leading to the creation of the Incentive Regime for Large Investments (RIGI) to attract funds to the nation's vast natural resources in exchange for fiscal and legal benefits.

Through the RIGI, new hydrocarbon, lithium and copper projects--such as the Vaca Muerta Oleoducto Sur pipeline, Rincon's lithium project, and Los Azules copper mine--have been announced with the hope of receiving government benefits.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed reports on projects related to the Vaca Muerta Oleoducto Sur pipeline; click here for a list related to Rincon's lithium project; and click here for a list related to the Los Azules mine.

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