China’s Argentina mining footprint smaller than it looks
Equity-based calculations put Beijing's share of approved mining investment at 9.2%, with new lithium projects poised to lift it.
Chinese companies are responsible for only 9.2% of the approved investments for Argentina's mining projects under its Large Investment Incentive Regime (RIGI), according to an analysis by Chilean consultancy Plusmining. This challenges the widely held belief that Beijing is behind 70% of the country's planned lithium production.
As of Oct. 1, Argentina had approved 23 projects worth $49.8 billion, including 12 mining developments valued at $21.2 billion. When weighted by Chinese shareholders' direct and indirect equity interests, the attributable value of these mining investments is approximately $1.95 billion. The discrepancy between the 9.2% and 70% estimates is due to the different measures of participation being used.
While the 70% estimate concerns announced lithium production capacity at projects with Chinese shareholders, both approved and pending, the 9.2% figure measures ownership-weighted investment in projects already approved under RIGI. This discrepancy highlights the difference in China's financial exposure, operational control, and rights to future production across the various projects.
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