Canadian mining companies are showing a growing interest in broadening their operations in Argentina, aiming to establish a “Andean financial corridor” that would link Canadian capital and investors with mining initiatives in Argentina and throughout the region. With four projects approved under the Large Investment Incentive Regime, totalling more than US$13.6 billion, and another worth US$5.2 billion awaiting approval, Canadian companies are positioned as significant contributors to Argentina’s mining sector. Their prominence in the sector predates the introduction of the incentive scheme. In 2021, the Argentine Chamber of Mining Companies estimated that seven of the 13 mining projects in the country were of Canadian origin. In this context, a delegation comprising Canadian experts and business leaders participated in a training workshop at Torcuato Di Tella University, which was organised by the University of Toronto’s Mining Industry Management Program in collaboration with The Andean Bridge. The latter represents a financial initiative aimed at linking mining projects in Argentina, Chile, and Peru with both domestic and international capital markets, encapsulated by the slogan “Building the Andean Financial Corridor.”
Guillaume Légaré, one of the event’s speakers and director for South America at the Toronto Stock Exchange and its venture exchange, the TSX Venture Exchange, described the event as a “unique opportunity” to showcase “the strength of the Canadian ecosystem” in mining and finance. He stated that early-stage mining projects throughout Latin America are encountering a capital shortage. “The importance of the junior mining sector in Argentina and the region is critical to the future growth of mining. And because there is no capital, and Argentina also lacks equity capital markets, development is very limited,” he said. For that reason, he said, the TSX “plays a very important role in facilitating access to early-stage capital.” The idea, he added, would be to “leverage some of Canada’s financial strength or its experience with this type of financing.” Légaré explained that a delegation of 12 Canadian investors is set to arrive in Mendoza on October 30. The group comprises representatives from banks and retail broking firms who “want to learn about more projects in Argentina and Chile.” He also noted that the delegation would evaluate one project in Bolivia, another in Colombia, and three in Brazil. The objective is to showcase to prospective investors projects that are more strategically aligned for a forthcoming listing on the TSX Venture Exchange.
For projects that are currently “not as well aligned at this point,” several initiatives will assist them in preparing for their eventual entry into global capital markets, he stated. The selection of Mendoza was not arbitrary. Légaré stated that the organisers aim to position the province as a “mining and finance hub.” The founding partners of the Andean Bridge comprise the Mendoza Stock Exchange and the provincial government. In response to a query regarding the potential for next year’s elections to generate uncertainty among mining investors, Légaré expressed that he did not harbour any concerns. “Argentina is well positioned at the federal level at the moment under the Milei administration, but there is also important leadership at the provincial level in connecting with investors and attracting projects,” he said. During the workshop, MIMP member Lawrence Devon Smith emphasised the significance of the annual rankings concerning the competitiveness of mining jurisdictions, as compiled by the Canadian think tank, the Fraser Institute. Argentine provinces are assessed independently from the nation at large due to the authority provincial governments hold in the administration of natural resources.
According to the latest assessment, covering 2025, San Juan achieved the highest ranking among Argentine provinces, securing the 14th position among the 82 jurisdictions evaluated, surpassing Brazil, Chile, and Peru. Despite the optimistic perspective, Devon Smith expressed apprehensions regarding the possible repercussions of battery safety incidents on the demand for lithium, a significant mining product in Argentina. He stated that Canada had recently experienced multiple incidents involving lithium batteries in electric scooters and kick scooters. “A number of them have exploded and caused fires inside apartment buildings, on balconies and in parking garages,” he said. Although he attributed these incidents to the quality of replacement batteries rather than original batteries,” he warned that if the trend continued, “people are going to shy away from lithium batteries, and the market could be impacted by that.” And “You can’t shape the public. I mean, if it goes down, if they start passing laws – no scooters, no lithium cars – where’s the market going?” he warned.
