BUENOS AIRES, Sept 23 Argentina's leading
opposition candidate Mauricio Macri would give provinces a
bigger share of profits from miners operating there and improve
environmental inspections in the industry, an adviser said in an
interview on Wednesday.
Santiago Dondo, a mining specialist at Pensar, the think
tank of Macri's business-friendly PRO party, said 80 to 85
percent of mining tax revenue currently goes to national
coffers.
"If Argentine society and politicians do not understand
where we are going with the mining sector, doesn't share that
aim or want it, then it will be very difficult," said Dondo.
"The main challenge ... is to generate trust at home, which
would also give investors stability."
Dondo said the federal government should take a more active
role in coordinating environmental inspections by independent
experts with the provinces.
A cyanide leak triggered by a faulty valve at Barrick Gold
Corp's Veladero mine prompted an Argentine judge last week to
order the preventative suspension of the gold leaching process
there.
Normalizing the economy and improving the credibility of
Argentine state institutions are also important for attracting
greater investment in the mining sector, he said.
Macri, the conservative mayor of Buenos Aires city, is
campaigning on a mandate to unwind unorthodox state controls on
the currency market and trade that have stunted investment and
stalled growth in Latin America's No. 3 economy.
"In a sector like mining which needs so much investment, so
much capital, all the economic distortions like currency
controls and uncontrollable inflation have a very strong and
negative impact," Dondo said.
Earlier this month, an adviser for the ruling party's
candidate Daniel Scioli said he would seek to increase
investment in mining by ensuring tax stability for foreign
companies eager to exploit Argentina's vast mineral resources.
Scioli is leading in polls but not by quite enough of a
margin to avoid a second-round runoff with Macri in November.
Analysts said a run-off could go either way.
(Reporting by Juliana Castilla; Writing by Sarah Marsh; Editing
by Toni Reinhold)