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Argentina lures

foreign mining investment

SYDNEY: Argentinian Foreign Minister Guido di Tella on Monday urged foreign companies to pour cash into the country's mining industry, describing it as a "last frontier" for investors.

Di Tella, in Australia on a one-week tour, said that he aimed to strengthen bilateral financial relations and boost investment in Argentina's minerals industry.

"Some people say Argentina is the last mining frontier in the world, I don't know about that, but it is one of the last frontiers," said Di Tella, who was due to sign a treaty protecting bilateral investments on Wednesday.

Argentinian officials said Australian firms had committed themselves to investment in Argentinian mining, port services, infrastructure and other projects worth Australian 1.5 billion dollars(1.1 billion US) from 1993-1998.

Australian mining group MIM is involved in a multi-million dollar investment in the Baja de la Alumbrera gold and copper mine in the province of Catamarca. Other Australian resource group in Argentina include CRA, BHP and Ampolex.

Shipping company P and O Australia is working on a 130 million US dollar contract it won to redevelop port facitilies in Buenos Aires.

Ambassador Enrique Candioti said legislation passed since Argentinian President Carlos Menem won office in 1989 had greatly liberalised the treatment of foreign investment in resource projects.

"We think investment will bring more trade and we are focussing on the possibility of technology transfer and the expertise Australia has in mining technology and telecommunications," he added.

Australia exported 116.8 million dollars of goods to Argentina in the year to June 1994 including coal and telecommunications equipment and imported 84.6 million dollars worth of products including vegetable oils, fish and chemicals.

Di Tella was due to meet Australian Foreign Minister Gareth Evans in Canberra to sign a treaty promoting and protecting investments on Wednesday before leaving the country on Thursday.-AFP