Australian mining companies investing locally and in Latin America

Australia is world famous for its mining prowess, and strong peripheral equipment, technology and services industries (known locally as METS). Australian mining investments are showing promising signs of growth, both locally and abroad, in spite of competitive global conditions.

As Australia achieves greater connectivity with key Latin American partners, opportunities present themselves for the country’s miners to expand abroad and invest in mining projects in the naturally wealthy region. Australia mining companies are attracted to Latin America’s vast biodiversity which holds significant deposits in highly sought-after minerals and metals.

We explore investment activity from some of Australia’s top mining actors, both in their home country and in Latin America. Biz Latin Hub can help Australia mining companies expand into the potentially lucrative market found throughout the region, rich in mineral deposits and ores. Our market leading back office services can keep you fully compliant with local laws.

Overview: Australia mining sector

Australia demonstrates world-class capability for mining productivity and innovation. It’s diverse landscapes house significant reserves in coal, copper, gold, and iron, among others. Mining represents 10% of the country’s overall GDP, making one of the highest-contributing sectors to the nation’s economic outputs.

Australia plays a key role in technology and innovation in mining, with services industries that steadily growing, and have potential to become world leaders. Leading industry body Austmine supports and promotes some 600 companies in the METS sector that offer crucial value to Australia’s humming mining operations.

While Latin America’s mining sector shows promise but lacks some technological advancement, it’s no surprise that Australian mining companies are increasingly considering investment opportunities in the region.

Austral Gold buys up Casposo mine in Argentina

Australian mining company Austral Gold has bought up the remaining 30% of shares in Argentina’s Casposo mine. Austral Gold held 70% interest in the gold and silver mine since 2016, and entered into a share purchase agreement with Troy Resources Limited to become the sole owner.

Austral Gold is also looking to “consolidate surrounding projects,” according to Stabro Kasaneva, Chief Executive of Austral Gold: “We are also assessing opportunities to consolidate surrounding projects and source ore from third parties. All these initiatives are part of our business strategy to consolidate mineral resources with the goal of recommencing mining operations at Casposo.”

The Casposo mine in Argentina covers approximately 100 square kilometres, with total resources estimated at 1.415 million tonnes.

Opportunities for Australian mining companies in Latin America

Opportunities for these powerful Australian mining corporations in Latin America are many and various. Latin America has a wealth of natural resources, and key mining countries such as Chile, Colombia, Peru, Mexico and Brazil each offer significant contributions to overall global mineral production.

Latin America has potential for growth, development and commercial success in its various mining-focussed countries. Australia’s brand and mining reputation holds high prestige in the region, and Latin American governments are open to welcoming further foreign investment from this South Pacific powerhouse.

Lacking somewhat in technology, innovation and sustainable practice, Australian miners can add value in implementing new methods and equipment to boost the sophistication of mining in the region. There are ample investment opportunities for junior explorers as well as large multinationals, especially as countries like Ecuador and Bolivia review their legislation to allow more foreign investors into the market.

As an Australian mining company considering expansion options abroad, consider leveraging Australia’s reputation and growing international relations and activity with Latin American mining countries.

Expand your Australian mining company abroad with Biz Latin Hub

When expanding your operations into Latin America, you’ll need to be aware of key differences in local legislation for corporate compliance, company formation, and applying for mining concessions and licenses. To successfully navigate local regulations in your new market, make sure to partner with a trusted, experienced local team.

Biz Latin Hub are market leaders in supporting foreign businesses expand to Latin America. Our local teams of legal, accounting, and human resource professionals offer a suite of market entry and back-office services to ensure your company succeeds in your desired market.

Contact us for personalized advice and support from our mining experts.

Learn more about our team and expert authors.

Biz Latin Hub can help Australia mining companies in the region