It was only in the 1990s that the Argentinean government created the conditions for the development of a modern mining sector. Since then, the sector has had its ups and downs. First, there was the financial crisis in 2001-2002 that brought the country’s economy to its knees and saw five different presidents rule Argentina in just a month. After that Barrick’s Veladero, a $2 billion-investment, became the country’s largest gold mine. In 2008-09 it was the turn of Western markets to collapse, leaving the sector short of the necessary cash to invest in exploration. Exploratory drilling in Argentina decreased from the record of 668,000 meters (m) in 2008 to 570,000 m in 2009, according to the Argentinean Chamber of Mining Entrepreneurs (CAEM).

This last crisis, however, did not prevent the opening of several new mines in 2008-09 including Yamana Gold’s Gualcamayo (gold), Pan American Silver’s Manantial Espejo (silver-gold), Silver Standard’s Pirquitas (silver) and China Metallurgical Group Corp.’s (MCC) Sierra Grande iron ore mine. Moreover, the huge bi-national Pascua Lama project is now under construction by Barrick; Brazil’s Vale is making a multi-billion dollar investment in potash; and as the world seems to have left the worst part of the subprime crisis behind, the prospects on the exploration side look much better now, with renewed dynamism from junior companies already noticeable during 2010.