On 13 July 2023, Resolution No. 90/2023 (“Resolution“) of the National Mining Secretariat (“Secretariat“) was published, establishing the updated mining fee (canon) that considers the consumer price index (IPC) published by the National Institute of Statistics and Census (INDEC). The update will be carried out in December of each year and will be applicable to the value of the mining canon in the following year.
Considering that the IPC is an inflation index, it is expected that the higher mining canon will be considerable year on year (as of December 2022, the IPC at 94.8% year-round and already at 50.7% in 2023). This implies a direct increase not only in the mining canon but also with respect to the investment plans required under the Argentine Mining Code, which are calculated on the basis of the canon value.
The Resolution’s main points are as follows:
- The canon updates, established in the current wording of Article 213 of the Mining Code, will be carried out through a resolution to be published every December by the Secretariat.
- The value of the mining canon will be based on the IPC index prepared and published by the INDEC, and the accumulated value of the 12 months prior to the report will be used for its calculation.
- The canon update will be applicable for the fiscal years following the issuance of the administrative act of the Secretariat establishing its new value.
The Resolution regulates the provisions of Law No. 27,701 on the General Budget of the National Administration, which on 1 December 2022: (i) granted the Secretariat the power to issue the Resolution; and (ii) provided for a substantial mining canon increase for 2023.
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