Argentine provinces bet on mining boom while battling economic woes

In Argentina, several provinces are banking on a mining boom to overcome their economic struggles. Of the 21 approved investments under the Incentive Regime for Large Investments (RIGI), 12 are located in the mining sector and are expected to generate over US$21 billion. These provinces - Mendoza, San Juan, Catamarca, Salta, and Jujuy - anticipate the creation of over 65,000 direct and indirect jobs.

Deregulation Minister Federico Sturzenegger predicts that mining ventures will lead to a million people moving to Catamarca and 800,000 to San Juan.

However, despite this optimism, these provinces are grappling with significant economic difficulties. According to a study by Austral University, economic activity in these five provinces decreased by 4.2% year-over-year in May 2026, with a 2.3% decline from April. While they posted a 1.9% increase in the first half of 2026, overall year-to-year growth remains down by 1.2%. The primary challenges stem from high informal employment, stagnant wages, and soaring household debts and delinquency.

Informal employment in Greater San Juan reached 60.9% in the first quarter of 2026, making it the most affected metropolitan area. Jujuy, Catamarca, Salta, and Mendoza also exhibit high informality rates, all above the national average of 44.2%. Wages in these provinces are also below the national average, with Catamarca at AR$1,826,270 (US$1,201), San Juan at AR$1,798,580 (US$1,183), Salta at AR$1,786,369 (US$1,175), Jujuy at AR$1,780,179 (US$1,171), and Mendoza at AR$1,628,096 (US$1,071).

Additionally, all five provinces show high levels of household debt and delinquency, with Catamarca leading at 21.8%.