On 9 June 2022, Joint General Resolution No. 5205/2022 of the Federal Tax Authority and the National Mining Secretariat was published in the Official Gazette. Such resolution repeals Joint General Resolution 4428/2019 and sets the new regulatory framework applicable to subjects that have borne, in a fiscal year and in national jurisdiction, a total tax and/or tariff burden higher than what would have corresponded for being beneficiaries of the tax stability provided in Article 8 of the Mining Investment Law, and wish to request the refund or crediting of the amounts paid in excess according to the provisions of paragraph c) of Article 4° of Annex I of Decree No. 1,089 of 7 May 2003.
Through Resolution No. 89/2022 (“Resolution”), published on 22 February 2022, the National Ministry of Productive Development (“Ministry”) created: (i) “The System of Public Information about Mining Activities in Argentina for the Community” (SIACAM, as its original acronyms in Spanish); and (ii) “The National Roundtable on Mining for the Community” (MEMAC, as its original acronyms in Spanish). Both motions aim to increase the citizens’ confidence in mining.
Mainly, SIACAM will provide public and detailed information on the social, economic and environmental impacts of mining activities, and MEMAC will organize multi-stakeholder dialogue spaces to discuss the benefits, risks and factors to be considered for the development of mining in Argentina.
By Decrees No. 234/2021 and No. 836/2021, the Executive Power established in Argentina an Investment Promotion Regime for Exports, granting benefits to those who make a direct investment in foreign currency of no less than USD 100 million, either for: (i) new investments; or (ii) to expand an existing business unit in industrial forestry, mining, hydrocarbon, manufacturing and agro-industrial activities.
On 3 August 2021, Resolution No. 742/2021 (“Resolution”) was published, whereby the Secretary of Energy (“Secretary”) issued new measures to be applied in favor of the successful bidders of the “RenovAr Program” (“Program”) projects delayed in obtaining commercial authorization or failing to provide the committed energy supply.
These measures, subject to certain requirements, involve the following incentives: (i) reduction of penalties; and (ii) extension of deadline to achieve commercial authorization.
By National Law No. 27,640, published on 4 August 2021, the National Congress approved the new regulatory framework for biofuels that will be valid in Argentina from 5 August 2021 until at least 31 December 2030 (“Law”). The Law establishes, among others, new mandatory percentages of biofuels to be included in blends with fossil fuels reducing from 10% to 5% the prior percentage for biodiesel, granting more discretion to the enforcement authority, and establishing tax exemptions while repealing previous tax benefits.
Through Resolution No. 706/2021, published on July 27 2021 and in effect as from that day, the Secretary of Energy created the “Liquefied Natural Gas Operators Registry” within the scope of the Undersecretariat of Hydrocarbons, dependent on the Secretary and the Ministry of Economy. The Resolution also regulated the requirements for granting LNG export permits for up to 20 years.
By means of National Decree No. 427/2021 (“Decree”), published on 1 July 2021, the National Executive Power granted the General Ports Administration (AGP), a State Company, the concession for the maintenance of a signaling system, dredging and re-draining tasks, and hydrological control of the Paraguay-Paraná Waterway (“Waterway”) for a period of 12 months, or until it is awarded by another entity through an international bidding proceeding.
On 8 March 2021, through Resolutions Nos. 50 and 51 (“Resolutions”) from the Nation’s Mining Secretary, more than 100 exploration companies and 33 mining services companies – indicated in Annex I of each of the Resolutions – have been preventively discharged from the Mining Investments Registry of Law No. 24,196. The preventive discharged was for one year. The companies that have been preventively discharged will be able to request reinstatement to the Mining Investment Registry in accordance with Section 4 of Resolution No. 118/2020, only if is not definitive.