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Argentina Mining Report 2015

BMI View: Despite Argentina's significant natural resources, we forecast the country's underdevelopedmining sector will see little growth in the years ahead. Indeed, we forecast average annual growth of just0.5% to 2019. Ultimately, both subdued metals prices and a difficult operating environment will keepmining exploration and development activity subdued. Nevertheless, various copper and gold mines remainin development.

We expect Argentina's mining sector will remain relatively small and underdeveloped compared to otherLatin American mining destinations, such as Chile and Peru, and that the industry will face headwinds inthe years ahead. While the country's upcoming elections in Q415 are likely to lead to business environmentimprovements, economic and political headwinds remain in place, including elevated inflation, capitalcontrols, and local content requirements. These and other challenges have made the operating environmentdifficult for foreign mining firms and will limit their ability to significantly expand current operations andinvest in new resources. Furthermore, corruption and weak financial and legal systems are likely to furtherimpede inbound investment. With most miners consolidating operations and restricting capital expenditureto lower-risk jurisdictions that present more attractive economics, Argentina's mining sector will beparticularly affected.

BMI Industry View
Industry Forecast
Copper: Stagnation To Continue
Table: Copper Production Forecast (Argentina 2014-2019)
Gold: Production To Grow Though Risks Abound
Table: Argentina - Key Mine Expansion Plans
Challenges Ahead
Table: Gold Production Forecast (Argentina 2014-2019)
Industry Risk Reward Ratings
Americas Risk Reward Index
Regional Risks Increase Modestly
Weak Prices To Hurt, While Stronger Dollar A Mixed Blessing
Regional Outlook Unchanged Despite Some Reordering
Table: Americas - Mining Risk/Reward Index
Industry Trends And Developments
Americas Mining: The Three Key Themes
Key Themes:
Regulatory Changes On The Cards
Dollar Strength And Oil Price Weakness To Support Production
Americas To Outperform Northern Peers
Regulatory Development
Macroeconomic & Political Challenges Ahead
Mining Code Remains In Place
Tax Regime
Persistent Corruption Ahead
Table: Political Overview
Commodities Forecast
Commodity Strategy
Ferrous Metals
Iron Ore: Price To Remain Under Pressure In 2015-2016
Steel: Subdued Prices Until 2017
Non-Ferrous Metals
Copper: Subdued Outlook, Despite Recent Rally
Lead: Prices Weakness To Continue
Nickel: Subdued Prices Due To Weak Demand Growth
Tin: Supply Deficits To Underpin Rally In Tin Prices
Zinc: Positive Multi-Year Outlook, But Increasing Risks In Months Ahead
Table: Select Commodities - Performance & BMI Forecasts
Competitive Landscape
Table: Argentina - Active Mining Firms
Company Profile
Global Company Strategy - Glencore Xstrata - Q3 2015
Company Overview
Latest Financial Results
Company Strategy
Table: Glencore - Supply Chain Analysis
Table: Glencore - Key Financial Data
Global Industry Overview
Global Overview
1. Capex To Focus On Productivity & Efficiency
2. US Dollar Strength To Continue
3. Price Weakness To Spur Iron Ore Consolidation
4. Asian Powerhouses To Change Investment Patterns
5. The Outperformers Of 2015
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Weighting Of Indicators

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