The survey investigates multiple flow and stock variables in the 500 companies with the highest turnover in the country (excluding the agricultural and financial sectors) and allows estimating, among other things, the remuneration of productive factors and helping to understand the contribution of large-scale mining , a recurring question in public debate.
In that sense It was highlighted that the vast majority of the billing of the large mining companies remains in the country since 19.2% of them go as payments abroad both in the form of direct and indirect imports of goods and services, interest payments and remittance of profits.
On the other hand, 80.8% of the billing remained within the borders through salary payments, purchases from national suppliers, taxes and company profits that were not remitted abroad.
Likewise, given the highly exporting nature of large-scale mining, since 87.2% of the total invoiced is exported and –compared to other sectors–, the report specified that the relatively limited outflow of foreign currency for imports and investment income, from For every US$100 sold, 68 ended up being a net generation of foreign exchange for the Argentine economy.
67% of the sales of the large mining companies in operation is broken down into wage bill expenses (15.2%), taxes at different levels of government (11.4%) and local suppliers (40.5%, here already imports embedded in these are discounted), detailed the report.
When the net disposable income of companies not remitted abroad (12.9%) is added to this, it reaches 79.8%, a figure very similar to the 80.8% that remains in the country according to the transactions approach. with the outside.
The profits of the companies, meanwhile, are equivalent to 18.1% of the turnover, and are made up of 12.9% of the net disposable income that remains in the country and 5.2% as distributed dividends. (which are assumed to be mostly remitted abroad).
The report also breaks down the characteristics of investment, productivity and wages in mining, which allows it to state that it is a highly capital-intensive activity, which requires large investments mainly for construction and, more secondarily, for machinery. and equipment, where a good part of the imports of mining firms are concentrated.
As an effect of this, it is explained that out of 220 branches of activity, mining ranks ninth in terms of fixed capital per firm, with a value 55 times greater than the average for the economy.
The high intensity of capital in turn explains the very high relative productivity of metal mining, which in turn is a determining factor (not the only one, given that specific union dynamics also play a role) in explaining why wages of activity are among the highest in the entire economy.
The sector ended 2021 with a figure of more than 33,000 direct formal jobs in its different segments (metallic, non-metallic, lithium, coal and direct support services), the highest level since there is a record.
In this sense, it was ensured that The mining sector has significant growth potential in terms of regional development and suppliers, while being an important contributor of foreign currency through exports and foreign direct investment.
In particular, metal mining is also a very important sector in terms of formal employment, particularly in provinces far from the central zone of the country, the most developed, and in terms of wages, as it is, together with hydrocarbons, the activity with the highest wages in the entire economy.
A particular characteristic of the activity is the high participation of services in its intermediate demand, representing 81.6% of the intermediate consumption of mining. For its part, the purchase of intermediate goods represents 18.4%.
Given that in services production and consumption tend to be carried out simultaneously, the consumption of productive services in the territory involves a notable impact in terms of the development of local suppliers.
88.7% of the amount of purchases of productive inputs – both goods and services – is made from local suppliers, while the remaining 11.3% is made up of imports
Source: Ambito
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