Metal mining, economic impact and conflict. An analysis of the “navidad” silver mining project in Argentina´s patagonia

Abstract

Although Argentina has great mining potential, large-scale metal mining has developed with little knowledge of its economic potential and parallel to social conflict. In the province of Chubut, the project known as Navidad acts as the main incentive to modify the provincial legal framework and allow its progress. Through different scenarios, the purpose of this work is to measure and contextualize the potential economic benefits (exports, profits, tax collection, employment) that this project could generate, especially for the provincial State. Taxation results reveal that contributions to the province would be limited, representing 1.9 % of the provincial budget and 7.5 % of revenues from hydrocarbon royalties. The greatest local impact could be generated by jobs in the communes near the site, something rather unlikely given the agricultural profile of the population there. The public and legislative debate on mining in Argentina requires more evaluations of this type in order to be better informed.