Due to mining industry, San Juan grew in 2012 high above national average

Its gross product has climbed 5% in a difficult year for the economy, which has been also affected by the international turmoil.

Despite the uncertain international situation and the slower growth in Argentina in 2012, San Juan GDP grew 5% last year, high above the average of 1% estimated by private researchers at a national level. This rise responds mainly to the mining investment traction, as stated by Felipe Saavedra, Minister of Mines of San Juan.

“There has been a fast growth in the area of non-industrial minerals, and the area of metals grew slightly less in part due to problems that arouse with the foreign exchange settlement issue,” said the public official in an interview with El Inversor Energético & Minero.

What are the expectations facing the development of the activity in 2013?, we asked.

Last year investment in prospecting was 1% higher than in 2011. This year we estimate that investments in exploration will concentrate primarily on Pachón, Los Azules and Altar, three copper projects with significant potential under development. We understand that the activity will continue growing and, in connection with Veladero, Gualcamayo and Casposo –the three active mines–, we estimate that production will be maintained or increased.

In turn, Lama-Pascua is going ahead with its construction. A week ago, we visited the site with the governor, and it has had a major breakthrough, almost 40% of the entire work. This year, more intensive investments are expected.

What is the medium-term projection?

Mining exports were virtually identical to those of 2011. I believe that within the next four or five years, the demand for industrial minerals, building stones, limestone, lime and cement will continue to be very strong. In fact, we wish that the cement plant that Loma Negra plans to build in the province could be constructed. In turn, in 2014, when Lama-Pascua starts its production, there will be a very important demand of lime, thus an increase in the capacity of the sector will be needed. In that sense, the government signed an agreement with the companies and agreed that all the lime used in the project comes from San Juan.

How long will it take to Los Azules (Minera Andes) and Altar (Stillwater) to achieve feasibility?

These projects are progressing very well. More mineralization has been found and thus resources are increasing, and certainly conditions will be much better once the economic pre feasibility study is carried out. At the Los Azules deposit, the exploratory campaign planned for this year is being carried out without any problem. More than 25,000 meters have been drilled.