Member access

4-Traders Homepage  >  Shares  >  Mercado Continuo Espanol  >  Repsol SA    REP   ES0173516115

REPSOL SA (REP)

143
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Argentina To Vet Mining Companies' Imports, Require More Local Buying

05/28/2012 | 07:08pm US/Eastern

By Shane Romig

Of

Mining companies with operations in Argentina will be required to submit requests to the government 120 days before importing goods and set up an "import substitution" department to boost buying of locally made goods, the planning ministry said in a statement Monday.

The mining companies will have to submit quarterly estimates of their purchasing needs, which will be vetted by a special working group at the Mining Ministry, according to the statement.

The new measures come amid a host of formal and informal barriers to imports thrown up by the government so far this year. The barriers are designed to safeguard the country's international reserves by limiting imports of goods and services and to protect local manufacturers from competition from cheaper imports.

Since February, companies have had to receive approval from a myriad of government agencies before they can import goods or buy services offshore, causing imports to plunge.

The country posted a trade surplus of $1.83 billion in April, up from $1.08 billion in March, according to the national statistics agency, Indec. Imports fell 14% on the year to $4.86 billion, while exports were down 6% at $6.69 billion.

Those barriers, however, have stoked intense trade friction.

On Friday, the European Union filed a complaint at the World Trade Organization challenging Argentina's import regulations

"The trade and investment climate in Argentina is clearly getting worse," EU trade commissioner Karel De Gucht said in a statement Friday. "This leaves me no choice but to challenge Argentina's protectionist import regime."

European officials are also up in arms over Argentina's decision last month to nationalize oil and gas producer YPF SA (YPF), a unit of Spanish oil company Repsol YPF SA (>> Repsol YPF SA).

The nationalization sent a chill through the local mining industry.

Brazilian mining company Vale SA (VALE, VALE5.BR) is currently reconsidering its plans to develop the $6 billion Rio Colorado fertilizer project in Argentina following the YPF nationalization and skyrocketing inflation of about 30% a year, the company's chief executive Murilo Ferreira said recently.

While the mining industry enjoys broad support from authorities in provinces such as San Juan and Santa Cruz, projects frequently face stiff resistance from environmentalists.

About eight provinces have banned open-pit mining and the use of chemicals common in the industry such as cyanide, effectively putting them off limits to large-scale mining projects.

At the same time, a strict federal glacier-protection law threatens to stall a number of projects by limiting economic activity in areas near glaciers.

-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@dowjones.com

Stocks mentioned in the article : Repsol YPF SA
React to this article
Latest news on REPSOL SA
11:42aDJRepsol Chairman Antonio Brufau to Hand Remaining Powers to CEO
11:01a PERA GROU : Perla gas, condensates field to start in July: PdV
04:17a REPSOL : The Board approves to call the AGM for next April 30, 2015, and the fin..
03/20 Top oil companies raise more debt than ever in 2015
03/18 REPSOL : Finance BV. closes two Hybrid Bond issuances for a total amount of €2,0..
03/18 Conoco to cut 7 percent of Canadian workforce
03/18 Canada's Talisman Energy to cut up to 15 percent of head office jobs
03/18 Talisman Energy cuts up to 200 jobs, mostly in Calgary head office
03/13 Insight - Its red shirts fading, Venezuela's oil giant embraces pragmatism
03/13 Its red shirts fading, Venezuela's oil giant embraces pragmatism
Advertisement
Chart
Duration : Period :
Repsol SA Technical Analysis Chart | REP | ES0173516115 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF