Glencore to Goldcorp Handed Tax Relief in Macri's Argentina

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  • Tax cut adds to elimination of currency and capital controls
  • New Argentine president seeking to lure back investors

Argentine President Mauricio Macri is giving mining companies including Glencore Plc, Goldcorp Inc. and Barrick Gold Corp. further relief in a global commodities downturn by eliminating export taxes.

Macri, who took office in December on a platform of repealing government intervention that had choked investments, announced his mining tax cut plan in a Twitter posting Friday, confirming a report by state news agency Telam.

The tax relief adds to Macri’s elimination of currency and capital controls that, along with falling prices, led to a $2 billion slump in mining exports since 2012, according to Martin Dedeu, a member and former president of the Argentine Mining Chamber. The tax cut will save miners $233 million, Telam reported, citing an official it didn’t identify.

“With the right policies in place, the mining industry has the potential to become an important contributor to Argentina’s economic growth and we are keen to play a part in realizing that potential,” Barrick President Kelvin Dushnisky said in an e-mailed response to questions on Friday.

Barrick, the world’s largest producer of gold, operates the Veladero mine in Argentina. Goldcorp’s assets in Argentina include a 37.5 percent stake in the Glencore-controlled Alumbrera mine and its Cerro Negro mine. AngloGold Ashanti Ltd. has a 92.5 percent stake in Cerro Vanguardia, a gold and silver mine. Other foreign mining companies with Argentine operations include Silver Standard Resources Inc. and Yamana Gold Inc.