Mining exports in Bolivia and Argentina face low royalty returns

Mining exports in Bolivia and Argentina are reaching significant levels, yet regional governments are receiving disproportionately low royalty payments compared to the value of extracted resources.

In Bolivia, gold has become a decisive source of foreign income. However, analysts indicate that royalties represent only about two percent of the exported value. The sector is also heavily impacted by informality, where some producers operate without paying the same taxes as formal companies. This lack of transparency affects the state's ability to fund health, education, and environmental controls, while mercury use in informal mining creates long-term environmental and health liabilities.

In Argentina, specifically in the Northwest provinces of Catamarca, Jujuy, and Salta, mining exports reached USD 1,803 million in 2025, accounting for approximately 30% of the country's total mining exports. Despite this, royalties in these jurisdictions represented less than 1% of their total budgetary income. Lithium remains a key driver, representing 50% of the combined regional export value. In Catamarca, mining accounted for 94% of total provincial exports, while in Jujuy, it represented 80%.