Argentine provinces bet on mining boom while battling economic woes

Argentina's western and northern provinces hold optimism about a mining boom, as evidenced by 12 approved investments out of 21 in the Incentive Regime for Large Investments (RIGI) program. These projects, located in Mendoza, San Juan, Catamarca, Salta, and Jujuy, are projected to cost over US$21 billion and create more than 65,000 jobs. Deregulation Minister Federico Sturzenegger anticipates a million people migrating to Catamarca and 800,000 to San Juan.

However, these provinces are grappling with significant economic difficulties. Austral University's recent study reveals a 4.2% year-over-year decline in economic activity in these regions for May, with a 2.3% monthly drop from April. Despite a 1.9% increase in the first half of 2026, overall economic growth year-to-year remains down 1.2%.

The Milei administration has struggled to address Argentina's primary economic issues: high informal employment, stagnant wages, and rising household debts and delinquencies. Informal employment rates in Greater San Juan are at 60.9%, and similar high informality rates persist in Jujuy (54.7%), Mendoza (52.3%), and Salta (51%). Only Catamarca remains below the 50% threshold at 45.1%, while the national average is 44.2%.

Compounding the problem, wages in these provinces are lower than the national average of AR$2,207,129 (US$1,452). Private sector salaries in Mendoza, Catamarca, San Juan, Salta, and Jujuy range from AR$1,628,096 to AR$1,826,270 respectively. Additionally, all five provinces face high debt levels and delinquency rates, with Catamarca leading at 21.8% and San Juan at 21%.