Mining industry economics in Bolivia and Argentina

Mining activities in Bolivia and Argentina are characterized by high export values but low royalty returns for regional governments. In Bolivia, gold is a major source of foreign income, though analysts note that royalties account for only about two percent of exported value. The sector faces challenges from informality and environmental concerns related to mercury use.

In Argentina’s Northwest provinces, mining exports reached USD 1,803 million in 2025, driven largely by lithium, which represents 50% of the regional export value. Despite this, royalties in Catamarca, Jujuy, and Salta accounted for less than 1% of total budgetary income in those jurisdictions.

In Bolivia, the broader corporate landscape showed a divergence in 2025 where sales declined by 8% while real profits rose by 24%, fueled by high commodity prices. Within the mining sector specifically, private operations contributed $180 million in royalties, representing 58% of the $309.7 million total collected. While mining cooperatives held a 48.5% share of national production value, they contributed 35% of total royalties, while the state sector accounted for 7%.