Pan American dangles US$1bn carrot in front of Macri

During a meeting with Argentine President Mauricio Macri, Pan American Silver chairman Ross Beaty announced US$1bn in investment earmarked for the company's stalled Navidad silver-gold project in the country's south.

In parallel to this development, the Canadian miner called on the country to lift an open pit mining ban in Chubut province, where Navidad is located.

In a release issued after the meeting, Pan American said it was encouraged by policies introduced by pro-business Macri's administration to make Argentina an attractive place for local and foreign investment.

"Under a favorable investment and legal framework in Argentina, Pan American remains committed to the safe and environmentally responsible development of this world class silver deposit," the firm said.

"Current laws in Chubut, however, prohibit open pit mine development. As such, Pan American has made no investment or construction decision on the Navidad project. Before any investment decision would be considered by the Company, existing provincial laws would have to be reformed and Pan American would have to obtain all required permits, as well as update the technical and economic analysis of the project," Pan American added.

The Vancouver-based company finished construction of its Manantial Espejo mine in Argentina in 2008 and an expansion of the San Vicente operation in Bolivia in 2009 before acquiring the Navidad deposit in Argentina in 2010 and Dolores in 2012.

Pan American took a US$100mn writedown on Navidad in 2012 following Chubut's ban on open-pit mining. The project has a total measured and indicated resource of about 635Moz silver, according to a 2009 estimate.