en.Wedoany.com Reported - Argentine mining has become the top priority sector for the European Union (EU) in its geopolitical strategy. During a discussion within the framework of Engineering Week, Olivier Luyckx, head of bilateral relations for EU-Latin America cooperation, clearly stated that the country has firmly entered the first tier of the European bloc's cooperation.
Luyckx made these remarks during a panel focused on financing. The panel also included Federico Elewaut, CEO of Citibank Argentina, and Silvina Bellantig, General Manager of Banco San Juan, who jointly discussed the feasibility of large-scale local mining projects. Analysts point out that the current global situation of frequent conflicts and macroeconomic stability place Argentina in a favorable position to attract the necessary capital.
The EU representative explained that due to the complex and conflict-ridden global situation, the bloc is implementing a major strategic shift in international relations. Since 2023, Europe has vigorously renewed its engagement with Latin America, defining the region as "the most compatible with Europe in the world." This political commitment is concretely embodied in the Global Gateway initiative. Through this plan, the EU aims to replace old development concepts with a model that integrates states, provinces, the private sector, and the financial system from the outset. Luyckx stated that the key is to add value locally, rather than buying and leaving as others do, representing a major bet. The plan has a global fund of 300 billion euros, of which 45 billion euros are allocated to Latin America and the Caribbean. He revealed that the European Commission is considering new technological mechanisms for public institutions, such as the possibility of direct equity participation in companies.
Regarding investment structure, Elewaut clearly stated that large projects will not be financed solely by debt. Typically, before bank credit enters, shareholders themselves need to provide one-third of the initial capital as equity. The executive also noted that current tensions and wars are forcing global companies to urgently diversify their supply sources, which directly benefits Argentina. He also corrected local indicators, arguing that a country risk of 500 basis points does not mean these projects cannot be financed.
Bellantig, from a regional bank perspective, focused on what she called "invisible infrastructure," i.e., the necessary financial support to ensure that the chain of suppliers, subcontractors, and local links can meet the global standards required by large-scale mining on time and with quality. She noted that many local SMEs face asset difficulties in meeting the conditions for traditional credit lines. To address this, she introduced the country's first mutual guarantee association (SGR) focused on the mining sector, developed by Banco San Juan. This tool aims to facilitate credit access and promote financial inclusion in the local ecosystem through a collaborative approach. Bellantig urged multinational operating companies to design predictable and "bankable" contract schemes so that financial institutions can support the long-term financing and sustainability of local suppliers.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
