Reuters: US Dollar Report: Argentina eases rules on export proceeds

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Argentina eases rules on export proceeds Jun 25th 2012, 19:10 Mon Jun 25, 2012 3:10pm EDT * Government needs dollar inflows to help pay debt * Miners had slashed exports due to currency rules * Officials extend deadline for miners, others BUENOS AIRES, June 25 (Reuters) - Argentina loosened its strict currency rules on Monday, extending the deadline for more than 100 companies - including some hard-hit miners - to cash in export earnings on the local foreign exchange market. President Cristina Fernandez has imposed a series of rules on trade and foreign exchange over the last year in an effort to bolster the supply of dollars, which her government needs to pay the public debt. Mining companies in particular said they had slashed exports because they could not comply with a new 30-day deadline to bring back their export proceeds. In a resolution published in the official gazette, the government extended the deadline to 120 days for several mining operations, including Minera Alumbrera, which is half-owned by Xstrata Plc, and Silver Standard Resources Inc's Pirquitas mine . Other exporters from a range of sectors were given between 90 days and 180 days to cash in their sales proceeds. The head of a mining industry group said last week it was difficult to close export deals within 180 days. The chamber represents the local operations of global miners, including Xstrata, Barrick Gold Corp and AngloGold Ashanti Ltd. Mining exports reached $6 billion last year and are expected to equal or top that in 2012. Argentine mines produce copper, gold, silver and other products. Compared with neighboring Chile or Peru, Argentina's mining industry is relatively undeveloped. Soon after her re-election in October, Fernandez ordered energy and mining companies to cash in all export revenues on the local market and ordered tax officials to approve dollar purchases on a case-by-case basis. Both measures were designed to counter galloping capital flight and bolster the central bank's foreign currency reserves, which the government has earmarked for debt repayment for a third straight year. Fernandez's center-left government also tightened controls last month on the import of equipment and supplies by mining companies, forcing them to get prior approval for overseas purchases and submit import plans 120 days in advance. Link this Share this Digg this Email Reprints

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