Argentina's lower house has approved a wide-reaching reform to the country's glacier-protection law, which is expected to give a major boost to its copper industry.
Argentina's lower house approved a reform that allows Argentinian provinces to decide which glaciers are important to their water resources and which are not. The "non-functional" glaciers would then be allowed to become mining sites, mostly benefiting copper mining.
The approval was widely expected after the country's senate cleared the reform on 27 February. President Javier Milei strongly backed the reform, which ensured that his party and allies that usually side with the administration in big votes made up the necessary majority in both the Senate and in the lower house.
The bill was approved late on 8 April by a 137-111 vote, with three abstentions. The bill needed 126 votes to pass. It is only a matter of time before Milei officially promulgates the law reform.
The updated legislation is expected to be a major boost to Argentina's stagnant copper-mining industry, as several resources of the red metal are found within the glaciers' perimeters. The country's mining secretary released a report in early February forecasting that Argentina would account for 6.1pc of world' copper production by 2035 at over 1.5mn metric tonnes (t)/yr. This projection now becomes possible after the reform.
Argentina's 20 most-advanced copper projects represent a combined $21.9bn in investment, and all are now positioned to significantly expand their resource bases as operators are permitted to work within glacier perimeters. Most of the country's copper reserves lie along the Andes mountain range on the border with Chile — an area that, on the Argentine side, is extensively glaciated.
The reform, coupled with Argentina's intentions to bolster its incentive regime for large investments, could attract new foreign investment to the country's copper industry. Despite having 116mn t of copper resources, it was only able to export $4bn of the metal last year — while Chile, which is located on the other side of the Andes, sold $50bn, according to Milei.
Javier Milei's office celebrated the approval, saying the reform eliminates "ideological distortions and artificial obstacles that hampered progress". His office had previously stated that the law, in its original form, allowed for misinterpretation that created legal uncertainty, curtailed investments and deprived provinces the right to regulate their natural resources.
The original law, among other restrictions, forbade mineral exploration and extraction within the glaciers' perimeters, which was then set by the Argentinian institute of nivology, glaciology and environmental sciences (IANIGLA) based on unclear criteria, Milei said on 14 November.
Major backlash ensues
Changes to the glacier-protection law have caused a major backlash from political adversaries of Milei and the general public in Argentina.
Greenpeace activists carried out peaceful protests in front of the lower house building, in Buenos Aires, and clashed with the police.
Congress members, lawmakers and environmental organizations that oppose the reform all agree that easing the protection of glaciers could threaten Argentina's water security. Greenpeace said during the 8 April protests that this would be opening a path to destroy most of Argentina's glacial environment, putting the country's water security at risk. The glaciers' meltwater regulates rivers all across the country and serves as the primary feedstock for several agricultural projects.
"We demand that this reform does not move forward, as it puts Argentina's main drinking water reserves at risk," Greenpeace said in a statement.
Nevertheless, the reform was approved, and its supporters insist that no province will permit glaciers vital to the nation's water resources to be turned into mining sites, which remains to be seen.
