Argentina’s mining investment stalls ahead of midterm elections amid policy uncertainty

Political uncertainty before Argentina’s October 2025 midterm elections is delaying mining investments, with CAEM calling for policy clarity, tax reforms, and stronger provincial dialogue to restore investor confidence.

Investment in Argentina’s mining sector has slowed sharply as uncertainty builds ahead of the country’s October midterm elections, according to the nation’s main industry group. Business leaders warn that unclear government signals and a lack of dialogue with provincial authorities are discouraging companies from advancing key projects.

“No one is going to make any decisions these days. That’s crystal clear,” said Roberto Cacciola, president of the Argentine Chamber of Mining Companies (CAEM), during a meeting with journalists on Thursday.

Argentina will hold its midterm elections on October 26, a key test for President Javier Milei, who faces falling approval ratings and legislative gridlock in an opposition-controlled Congress.

Industry calls for stability and clear rules

Cacciola emphasized the need for the national government to rebuild confidence by restoring coordination with provincial governors, who under Argentine law control the country’s mineral resources. “Institutional dialogue is essential to ensure governability and attract investment,” he said.

Argentina is among the world’s top producers of gold, silver, and lithium, and holds vast untapped copper reserves seen as crucial for the global energy transition.

According to CAEM, Argentina’s mining exports will reach a record USD 5.09 billion in 2025, a 14% increase over 2024. Gold will account for about 80% of exports, followed by 14% lithium and 12% silver.

Lithium expansion offsets gold slowdown

Despite the overall growth outlook, gold production is expected to fall 10% year-on-year, marking a 39% drop compared to 2018 levels. The lithium segment, by contrast, continues to expand rapidly, with output projected to rise 54% and exports up 43% in 2025.

However, Cacciola cautioned that a global lithium oversupply and rising domestic costs are already delaying some new developments. “The price drop is slowing construction of planned projects. There are no major layoffs, but we are seeing early signs of restructuring,” he said.

Policy reforms key to competitiveness

The CAEM president urged the Milei administration to eliminate export duties on gold, lithium, and silver, and to remove withholding taxes applied to gold and silver exports. He also called for clarity on the Glacier Law, which defines protected areas for ice fields and periglacial zones, a regulation that companies say creates uncertainty for exploration and infrastructure planning.

“The country needs predictable rules, efficient logistics, and competitive costs if we want mining to become a true pillar of Argentina’s economic recovery,” Cacciola concluded.