Argentina raises taxes on miners

Some tax exemptions for miners in Argentina may be a thing of the past.

Reports out of the South American country say miners there will now pay export duties of 5 to 10% — erasing their previous exemption from the tax.

The Argentine mining chamber (CAEM) said four companies have already been told to make the new payment, but there are conflicting reports about which companies they were.

While Reuters reported that the Chamber said the Minera Alumbrera joint venture had been told it was among those subject to the new tax, the companies involved in the project deny being notified.

The Alumbrera copper mine is run as a joint venture consisting of Xstrata (XTA-L, XSRAF-O), Goldcorp (G-T, GG-N) and Yamana Gold (YRI-T, AUY-N, YAU-L).

A spokesperson for Goldcorp said that the company had received no notification from Xstrata who leads the joint venture with a 50% stake or the government regarding a change in tax structure.

What’s more a spokesperson for Xstrata told Reuters the company hadn’t been notified by the government either and that the project is protected by a tax stability agreement.

“The Argentine government has so far been very good at maintaining that agreement and we hope it will continue to do so,” the spokesperson was quoted as saying.

Other companies with producing mines in Argentina include: Barrick Gold‘s (ABX-T, ABX-N) with its Veladero mine, AngloGold Ashanti‘s (AU-N, AGG-A, ANGJ-J) with its Cerro Vanguardia gold mine, and Coeur d’Alene Mines (CDM-T, CDE-N) with its Martha mine

Outgoing President Nestor Kirchner who is to be replaced on Dec. 10 by his wife Cristina Fernandez Kirchner increased export duties on commodities such as petroleum, grains and oilseeds last month. Because of that move speculation the mining industry would be targeted next had been mounting.