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Leigh McBain  -  Nov 26 12:11 PM 5 Posts 0 Followers 0 Following
What are the true expectations regarding the rumored pending legislative changes for mining in Chubut?
As I understand it there are expected legislative changes pending in the Province of Chubut. Said changes have been commented on multiple times in the public arena by the Governor (Mario das Neves), yet still remain outstanding and I am wondering if there is anyone on the boards with specific expertise or knowledge as it relates to the current state of things.

There are multiple companies with mining exploration projects in the province and it appears that all, to varying degrees, are making substantial reductions in the expenditures they have planned for the projects; I have also heard that doing a financing to fund ongoing operation of a project based here is very difficult at the moment as a result of the long delays in the implementation of the changes. Again any commentary from the perspective of a company, institutional investor, or larger company looking to JV would be of interest.

From what I gather the changes that are expected are intended to define areas where open-pit mining is not believed to be problematic (potentially the central plateau), as well as possible the lifting of a wholesale ban on the use of cyanide, as well as a much better, more clearly defined set of criteria for acquiring a mining permit.

The most significant player potentially affected by all of this is Pan American Silver, but they are not the only ones claiming an impact as a result of the amendments remaining in a "pending" state. Until recently they had been indicating (in public) an expectation that the implementation of the amendments would still occur this year; however, that expectation has now been modified to April+ providing an allowance that nothing may happen in advance of the elections in March.

Any commentary / discussion on the above overall scenario would be appreciated. I look forward to it.

Thanks,

Leigh

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Ian R. Campbell  - Nov 28 11:40 AM26 Posts0 Followers0 Following
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Leigh:  Excellent post – exactly of the nature and quality we hope to attract to our Q&A Forums  to stimulate discussion.  As you know, our Forums currently are in Beta Test.  I anticipate opening them up to all Subscribers as early as December 6.  It may be that others will add answers to your question then.

 

My answer:  You obviously have read much of the same data and news articles that I have read.  Pan American seems to be the most vocal as to the expectations of its senior management.  The most recent news article I have read is dated November 18 and titled ‘Pan American Silver is hoping a modification in provincial legislation’.  You can find that article at http://www.sabcentre.com.ar/e-noticias.php.

 

You may also have seen a Mineweb article dated two months ago (September 22) that reported Michael Steinmann, Pan American’s EVP Geology & Exploration as saying  that Pan American is investing U.S.$40 million (over 10% of its cash and short term investments at its latest quarter end) to bring its Navidad property to feasibility status – see http://goo.gl/DoVu1. Assuming that statement means Pan American is now making that investment (which I would want to verify with management) in advance of the passing of any legislative change, that would reinforce for me that the Pan American Board and Senior Management collectively have a high level of confidence that legislative change will occur, and that it will impact positively on Navidad.

 

As I see things, until a law is passed by any Government nothing is certain.  In this case, the only people I can imagine that would have ‘true expectations’ would be Chubut’s Governor, Minister of Mining (or equivalent) and their close advisors and senior staff – and even they likely don’t know timing for certain, and if they do are unlikely to tell anyone in a way that can be taken as ‘certain’.

 

I am not a shareholder in Pan American or any other company operating in Chubut Province.  That said, if I was contemplating buying shares in any of those companies, including (and perhaps in particular) Pan American given the size of its Navidad resource, I  would talk with the President of the company or companies I was researching.  I assume you may have done that in your research, but suggest you do that if you haven’t.  I certainly under any circumstance would talk with Geoff Burns, Pan American’s CEO, if for no reason other than he has been very vocal of late on the issue and its timing.  I consistently find Company Presidents very approachable and interested in sensible dialogue about their companies.  I will be surprised if calling Geoff Burns wouldn’t generate a result consistent with that.
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Leigh McBain  - Nov 29 01:50 AM5 Posts0 Followers0 Following
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Thanks for your response Ian; I have had numerous conversations directly with companies operating in that province and am getting a variety of answers; from the Pan American answer that all is good and the changes are expected anytime (a stance they have held for a good year and is getting fairly stale) to that of others like Pacific Bay who just recently had UrAmerica Ltd default on their option to acquire 60% of a fairly prospective uranium property in Chubut or Golden Peaks who have proven their La Fortuna project is of fairly substantial merit, yet are indicating that they cannot continue to finance operations equitably in the province and are deferring further work / investment altogether until things change. Golden Peaks has gone so far as to have made an acquisition play for another company with a new set of projects in Indonesia as a result. (I own share in Golden Peaks, but no others in the province at present).

I was recently sent the following article with respect to mining in Argentina and with reference to Chubut province; it has obviously been translated and is a little rough, but the majority of the point gets across "GEMERA (Group of Exploring Mining Companies of the Argentine Republic) is quite bothered by the unsubstantiated fear mongering that appears to be occurring at present". Having said that, it is not like GEMERA would be considered non-bias, but the point still needs to be made that mining and ecological consideration and balance do not need to be mutually exclusive and that the facts need to be looked at objectively. The article is as follows; it is quite interesting:

25/11/2021 12:36
SOLANAS, STOP THE LIES

Given the recent visit to Chubut filmmaker, actor and national deputy for the Federal Capital, Fernando Solanas, GEMERA-Group of Companies Scouts of Argentina, fulfills the duty to inform the general public that that holds a national legislature political discourse of hostility toward the mining industry in Argentina, based on objectively verifiable lies.

Patience and tolerance by the mining industry, the mother of all industries, has reached its limit, which becomes mandatory and necessary to put a definitive stop to clear the smear campaign, harassment and misrepresentations that test against mining, strongly ideological sectors that make up his sermon based on confrontation, hatred and the proposed division of our society.

Thus they are good, we the bad guys. They say the truth, we lie. They are patriots, we sell-country. So build and nurture unnecessary confrontations and divisions in a country that needs more than ever, cohesion and inclusion of all stakeholders, based on dialogue and generous work.

The MP for the city of Buenos Aires, Fernando Solanas, used to briefly visit different parts of ourselves and from there, enjoy hurling accusations generic and impersonal, spreading lies, fear and anxiety among communities who generously open the doors of their cities .

A concrete example of what we affirm what was his last, brief visit to the province of Catamarca, where in February of this year, Fernando Solanas, accusing lightly landed there in mining, without saying specifically what the company, painful death a girl as young as 13 years Laura Fernández-Real, who suffered from birth a congenital disease that eventually resulted in his death. On that occasion, the deputy Buenos Aires, do not hesitate to use the drama of a family and the death of the girl alluded to download their artillery of lies and hatred against mining, adding more pain and helplessness to the parents of Laura.

His reckless and untruthful accusation was later denied the report that Dr. Daniel Stambulian, infectious and undeniable FUNCEI of international prestige, made available to the public in September this year. Solanas is an actor, filmmaker and politician. Stambulian a scientist devoted exclusively to health.

Anyone want to corroborate what GEMERA applies here, no more than ask the recorded testimony of the relatives of this girl, categorically denying the claims of the actor, film director and deputy national Fernando Solanas, or otherwise, read the report the FUNCEI.

On that occasion, the deputy Buenos Aires had to leave the city quickly without returning Andalgalá to date, and more seriously, without trying to lie and corrected of so much cruelty.

However, from his trench, hiding behind accusations never proven, Solanas such wonders in his book "Southern Cause": ".... How should pay income tax and all others, with the fabulous profits more than 100% in 2 years depreciate their investment? What is the business making the big mining country if they take everything and pay nothing ?..." pag. 287

Lies Solanas: Mining companies in our country pay all legal fees in addition to this course and contribute 3% in royalties, an amount that is added to the above. Taxes only in our country reach more than 52% of the total amount of the mining business, in any establishment in our country. This tax burden is the highest in South America and one of the highest in the world.

In another passage of his libel, filmmaker, artist and legislature of Buenos Aires, said: "... Altitude sickness, the harsh climate, atmospheric pressure and the imbalance to which they are subjected, are frequent causes of deaths from cardiac arrests ... "page. 295

Solanas again lied and persists in his inclination to play with the specter of death: Not only is a big lie than the usual targets, generate anxiety and terror in society unprepared and not have to understand the details activity, but also their lies are in this case a complete lack of respect for the Argentine labor movement, which through AOMA (Association Obrera Minera Argentina), an umbrella and defend the miners, has signed all collective bargaining agreements with different companies operating in the country, becoming a custodian rigorous working conditions thereof.

Solanas is lying, and lying as you know also knows that his lies to last more or less, but sooner or later incur exposure to well-intentioned people without bias, take the simple job of listening to all voices.


GEMERA welcomes and encourages any space you intend to build dialogue, honest reflection and debate among all stakeholders of our community.

The mining industry in Argentina, promotes the welfare and sustainable progress of our communities, taxed taxes that make the laws, respecting the environment and the rich cultural and ethnic diversity of our nation.

However, it will not stop answering every lie and every free throw media attack that only those who find their political reason to exist in the distribution of lies and pseudo ecological terrorism.


Trelew, November 22, 2021


Dr. Julio Ríos Gómez

President GEMERA

Ms. Maria Cecilia Astutti

Delegate GEMERA Chubut

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