Industry ministry signs critical-minerals cooperation pact with Argentina

The industry ministry said that South Korea and Argentina signed a memorandum on critical-minerals cooperation during President Lee Jae-myung's visit, creating a framework to back Korean companies' purchases and investments.

Until now, bilateral mineral cooperation had centered on projects pursued by individual companies. Argentina, rich in lithium and copper, already hosts Korean companies involved in lithium production and processing. The accord covers information on policies, regulations and investment systems, as well as joint projects across the lithium supply chain in both countries and third countries. It also calls for expanded cooperation between the countries' geological-survey agencies and a director-level hotline. The ministries plan to hold a joint public-private meeting by year-end to support existing projects and identify new cooperation projects.

POSCO Holdings' Sal de Oro project, Korea's largest investment in Argentina, has drawn cumulative investment of about $1.15 billion. It is due to complete its second phase in October and aims to reach annual production capacity of 100,000 tonnes by 2028.

Kim later urged Economy Minister Luis Andres Caputo to provide swift, predictable permit procedures and infrastructure support for Korean operations. He also requested information sharing on new mining projects and opportunities for Korean companies as cooperation expands into copper.

At a dinner with eight Korean companies in Argentina, POSCO Argentina said the Sal de Oro project had been approved under Argentina's large-scale investment attraction program and would receive corporate-tax reductions and other tax benefits. Kim heard concerns about transaction and investment constraints tied to the country's low credit rating, as well as registration and sanitary requirements affecting consumer-goods exporters. "We will strengthen cooperation with the Argentine government to actively resolve the difficulties faced by companies and improve their operating environment in practical terms," Kim said.