Local or foreign companies? The debate is not insignificant.
In Chile; for example; there are clear frameworks:
➡️ A foreign company can operate as a foreign company agency; dependent on its parent company.
➡️ Or it can set up a local subsidiary (SpA or S.A.); which means it has legal status; something that an "agency" does not have.
Therefore; for example; the subsidiary has broad participation in tenders and the agency has restricted participation.
Chile regulates the game: it regulates local representation; registrations with the SII; requires local employment and strengthens the supply chain.
In Argentina; on the other hand; foreign companies often provide services without a local address or corporate structure; competing on unequal terms with Argentine (San Juan) companies. What happens in these cases where only the Binational Mining Treaty is enforced? What about competition with local suppliers who do comply with all the rules?
📊 In Chile; there is the SICEP platform; used by the mining industry to search for; select and monitor suppliers of goods and services. Large mining companies such as Codelco and BHP work with SICEP.
📌 An interesting fact: this important platform is run by the Antofagasta Industrial Association.
Statistics in Chile show us that more than 68% of employment in mining operations comes from the same region; and some companies reach 90% local employment.
The question is uncomfortable but urgent:
👉 Shouldn't we start legislating in Argentina following these models?
👉 What opportunities would open up for San Juan suppliers if we established clear rules that levelled the playing field?
In mining; competitiveness means equalising conditions for fair competition; strengthening the value chain and local employment. It is also urgent to review expenses; reduce costs and optimise processes in order to make decisions that will take your company where you want it to go and where you have prepared it to go.
📺 Thank you to the program De Sobremesa (DS); broadcast on Canal Telesol San Juan; for inviting me to talk about this highly topical and urgent issue for the mining sector and local suppliers.
