In force since Feb 28, 2024
Jujuy local content: 70% of the annual amount, and the local supplier may be 10% more expensive
Acuerdo Decree 290-DEyP/2024
in forcePROVINCIAL
RIGI and investment
Acuerdo Decree 290-DEyP/2024 obliges Jujuy's mining producers to contract 70% of their annual amount with registered local suppliers, and with fines if they fail to.
The other rules on this subject32
What changed and who it applies to
What changed
It obliges mining producers and local suppliers to contract works, goods, inputs and services from suppliers registered with the Provincial Registry, «at a percentage no lower than seventy per cent (70%) of the total annual amount contracted with all its suppliers» (art. 5). And it carries the most actionable mechanism in the whole series: if the local supplier meets the technical, financial and schedule conditions and does not exceed an outside bid's price by more than 10%, the mining producer «shall request the price adjustment in a verifiable manner and report it to the Registry so that it may intervene» — meaning a Jujuy supplier can be up to 10% more expensive and the miner cannot simply drop it. On employment, art. 6 requires no less than 70% of the payroll domiciled in Jujuy, under a progressive schedule the Enforcement Authority sets between 40% and 70% according to the project's stage and size, within no more than a year. Who counts as a local supplier (art. 3): real, legal and tax domicile in Jujuy held for at least two years after registering; if a legal entity, incorporation in the province and 50% or more of its capital held by partners domiciled in Jujuy or a branch or representative office in the province; 70% of its own payroll domiciled in Jujuy; professionals registered with the provincial body for at least a year; and in a joint venture, the parties together must be at least 30% local suppliers. The escape valve (art. 8): the producer declares under annual oath the inputs, labour, services or critical goods «lacking local production and/or provision», and those are left out of the calculation. The penalty (arts. 7, 9 and 10): a compulsory annual report, and sanctions on the producer of warning, formal notice and a fine of up to one million times the price of a litre of YPF's highest-grade diesel in San Salvador de Jujuy, tripled for repeat offences; on the supplier, up to removal from the Registry. verif Feb 28, 2024 ↗
In force
In force since 2024. Art. 13 orders it referred to the provincial Legislature for ratification, and whether that ratification took place was not verified. prob Feb 28, 2024 ↗
Who it applies to
On the mining producer it sets an enforceable floor: there is an annual report, there is a Registry that intervenes and there is a fine priced in litres of diesel. To the Jujuy supplier it gives price headroom: if it is up to 10% above, the miner has to ask it to adjust before buying from someone else. For the outsider, setting up a branch or representative office in Jujuy is enough, with no need for 50% of the capital to be local verif. Río Negro gives something similar: the Río Negro supplier can match the best offer if it does not exceed it by more than 8% (Ley 5805, article 7) verif. That it is the most enforceable floor in the series, and that the outsider's door is the same one Río Negro leaves open and Neuquén shuts, is our own comparison thesis. verif Feb 28, 2024 ↗
The norm
Acuerdo Decree No. 290-DEyP/2024, San Salvador de Jujuy, 28 February 2024, signed by governor Carlos Alberto Sadir in general agreement of ministers. It replaces Acuerdo Decree 8854-DEyP-23. Its art. 13 orders it referred to the Legislature for ratification. verif Feb 28, 2024 ↗
Our reading
It is the most actionable local content rule in the observatory, and what sets it apart is not the percentage but the mechanism. A 70% with no procedure is a declaration; here art. 5 turns the price gap into a compulsory step with a third party watching: the producer has to ask for the adjustment and has to report it to the Registry. For a Jujuy SME, registering stops being red tape and becomes the only way to reach those ten points of tolerance. And the denominator that would price it is missing: the Registry does not publish its roll, so there is no way to measure whether registered supply can cover the compulsory 70%. That request is written and unsent in `analisis/jujuy/pedido-acceso-informacion-registro-proveedores.md`. It applies to every Jujuy mining project, not only to Cauchari-Olaroz. thesis
Analyze this rule for my company
Where it lands, province by province1
Jujuy It turns each Jujuy mining producer's annual spend into demand with a compulsory destination: 70% of the amount contracted has to go to companies on the provincial Registry, and a registered supplier can be 10% more expensive without losing the sale. For an SME in the province, registration is both the barrier and the key. favorable thesis
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Analysis and curation: Ignacio Aredez
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