Argentine legislation that targets mining

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articlenopic(Reuters) - Argentina's lower house passed a bill last week to ban mining and oil extraction around the country's Andean glaciers, a move seen curtailing investment in the mineral-rich nation.

Some Argentine provinces are already taking action to try to circumvent the bill, while others have enacted legislation in the past to restrict mining on environmental grounds.

Here are some key facts about Argentina's growing mining industry and laws that affect miners:

* Argentina's booming mining industry attracted roughly $2.3 billion in investment in 2008, up more than 1,000 percent from 2003, according to the Mining Secretariat. Argentine mining exports totaled about $3.9 billion in 2008.

* Several mining provinces are trying to sidestep the proposed federal glacier bill by passing less restrictive provincial mining laws, announcing their intentions with a joint declaration.

San Juan, La Rioja and Jujuy have already passed laws saying mining projects in glacial areas should only be banned on the basis of environmental impact assessments commissioned by the local government. Catamarca, Salta, Rio Negro and Santa Cruz are expected to follow suit.

While a federal law on mining would trump provincial laws, a lengthy legal battle could ensue, according to constitutional law expert Gregorio Badeni.

* In 2008 La Rioja revoked a ban on open-pit mining, earning a pro-mining reputation bolstered by Gov. Luis Beder Herrera's July trip to China in search of investment for the sector.

Other provinces have taken a harder line against mining:

* In 2003 the Patagonian province of Chubut banned open-pit mining and the use of cyanide in mining, stranding several projects in the exploration stage including Pan American Silver's Navidad project, one of the world's largest undeveloped silver deposits.

* The central Cordoba province banned open-pit metal mining, uranium mining and the use of cyanide in 2008. The Cordoba Mining Chamber calls the law unconstitutional and is fighting to have it overturned.

* Mendoza banned the use of chemical substances like cyanide in mining, leaving several projects suspended since 2007. Several lawsuits have been filed to challenge the law's constitutionality.

* A 2005 Rio Negro regulation banned the use of cyanide and mercury in extractive processes in the province, preventing several companies from beginning production.

* The central province of San Luis banned the use of chemicals including cyanide and mercury in mining in 2008.

* The southern province of Santa Cruz restricted mining to a certain part of its territory last year.

* The northern province of Tucuman banned open-pit mining and the use of cyanide and mercury in 2007.

Sources: Argentine Mining Secretariat; Argentine Chamber of Mining companies (CAEM); Panorama Minero magazine.

Reporting by Alexandra Ulmer; Editing by Brad Haynes and David Gregorio for Reuters.com

Source: http://www.reuters.com/article/idUSTRE67G46320100817

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