Mario Das Neves needs to buy a razorA tiny little story caught my eye on Tuesday, and it obviously caught the eye of a reporter in Argentina's newspaper of record, La Nacion too. In the South Argentina province of Chubut, one of governor Mario Da Neves' closest supporters, Norberto Yahuar, resigned this week after reporting friction between himself and other factions of the regional government. Apparently Yahuar's big problem is with Governor Das Neves' son, who is trying to muscle in and take over the day-to-day running of the Province while his father expands and marks territory for his presumed 2011 presidential push (at least according to the cattiest critics).
It's a typical story of Argentine nepotism for sure, and personally I don't give two hoots who runs the shop as long as its run relatively well, but the thing I picked up from this is that local business concerns are likely happy enough with the nascent father-son double act. (or else Yahuar would still have a job....you gotta know provincial Argentina to know these things, dudes). Das Neves Senior represents the non-Kirchner part of the ruling Peronist (PJ) party grouping that looks for social and economic progress more inside the present system, and during his second term of office (and to the specific delight of foreign capital) Das Neves has turned Chubut from an anti-mining reactionary area to a pro-mining region.
Main beneficiary so far has been Aquiline Resources (AQI.to), owner of the large silver/lead "Navidad" project in midwestern Chubut. After getting the big dude to visit their project recently, AQI was rewarded by Mario Das Neves waxing lyrical to a crowd gathered in the Canadian Embassy in Argentina about the exemplary social and environmental responsibility of the AQI set-up. This may not be a surprise for those of us who know the difference between 21st century clean mining standards and the type of thing miners still try to get away with when people are not looking (ask FCX at Grasberg), but the fact that miners (if obliged to do so) can extract the goods leaving very little enviro footprint and actually look out for the people who live around the area is still new news for politicos like Das Neves. What it does mean is that Chubut is quickly becoming a miner-friendly corner of Argentina, and if Das Neves Jr is shaping up as the new power-that-be, companies like AQI will be pleased enough.
So keep your beady eye on AQI and any other miner with Chubut exposure. As a country, Argentina is a very regional political risk exposure, and having the local governor on your side is probably more important than having the national government running with you. Right now, I'd rather be a junior in Chubut than in Mendoza for sure, no matter what Exeter Resources (XRA) might tell you!
Local knowledge. Get some.It's a typical story of Argentine nepotism for sure, and personally I don't give two hoots who runs the shop as long as its run relatively well, but the thing I picked up from this is that local business concerns are likely happy enough with the nascent father-son double act. (or else Yahuar would still have a job....you gotta know provincial Argentina to know these things, dudes). Das Neves Senior represents the non-Kirchner part of the ruling Peronist (PJ) party grouping that looks for social and economic progress more inside the present system, and during his second term of office (and to the specific delight of foreign capital) Das Neves has turned Chubut from an anti-mining reactionary area to a pro-mining region.
Main beneficiary so far has been Aquiline Resources (AQI.to), owner of the large silver/lead "Navidad" project in midwestern Chubut. After getting the big dude to visit their project recently, AQI was rewarded by Mario Das Neves waxing lyrical to a crowd gathered in the Canadian Embassy in Argentina about the exemplary social and environmental responsibility of the AQI set-up. This may not be a surprise for those of us who know the difference between 21st century clean mining standards and the type of thing miners still try to get away with when people are not looking (ask FCX at Grasberg), but the fact that miners (if obliged to do so) can extract the goods leaving very little enviro footprint and actually look out for the people who live around the area is still new news for politicos like Das Neves. What it does mean is that Chubut is quickly becoming a miner-friendly corner of Argentina, and if Das Neves Jr is shaping up as the new power-that-be, companies like AQI will be pleased enough.
So keep your beady eye on AQI and any other miner with Chubut exposure. As a country, Argentina is a very regional political risk exposure, and having the local governor on your side is probably more important than having the national government running with you. Right now, I'd rather be a junior in Chubut than in Mendoza for sure, no matter what Exeter Resources (XRA) might tell you!
UPDATE: So much for my local knowledge. Thanks to the reader who just pointed out to me that AQI's project is "Navidad" and not "Natividad". That's what happens when you write copy late at night while watching the futbol. Thanks for the correction.