Argentina's government will introduce a new optional tax system for copper producers, possibly lowering export duties, in an effort to develop the nascent industry, a senior government official said.
Argentina's Economy Minister Martin Guzman announced the move at a mining forum. In a statement, the economy ministry said the government decided to adopt the incentives, which companies can participate on a voluntary basis, after dialogue with provinces and companies involved in the sector. The government has incorporated gradualism and flexibility into the mining tax regime to provide greater certainty for investors.
The new tax regime would allow a variable tax rate of 0-8 per cent based on the copper price to replace the current 4.5 per cent export tax on new copper investment.
Argentina's neighbors Chile and Peru are the world's first and second largest copper producers and exporters.
The economy ministry said Argentina has a high potential in producing and exporting copper, with several projects in advanced stages.
