The administration of the free economic zone (FEZ) Zapala intends to provide tax preferences and create an attractive energy infrastructure for mining companies.
Recently, the Argentine government has been pursuing a restrained policy towards mining companies and introducing a number of restrictions on businesses in the country. Against this background, the intention of the Zapala free zone administration to create a territory with favorable conditions for doing business for cryptocurrency mining looks the most attractive.
“Argentina is a paradise for cryptocurrency mining. The fact that we are a free economic zone gives us the advantage of tax exemption for certain projects. This is a very attractive space for investments related to mining and technology. We are located in the heart of the province of Neuquen with good transport links,” said Fernando Montero, CEO of Zapala.
He clarified that Zapala’s business development plan takes into account the presence “in the Neuquen Basin of more than 20 suppliers of natural shale gas with very competitive prices” that will be used to generate electricity. It is expected that the cost of a kilowatt-hour in the territory of the free zone will not exceed $0.022.
The development plan of Zapala is divided into several stages. The first stage is aimed at ensuring the generation of at least 114 MW of electricity in the first year and will begin with the reconstruction of main gas pipelines with a length of more than 100 km. Over the next two years, it is planned to increase electricity generation to 1 GW. The implementation of this task is linked to the construction of a new gas pipeline from Anelo, which will replenish the energy potential of the free zone.
“For comparison, it is enough to remember that the capital of the province, the city of Neuquen, consumes only 250 MW,” explained Montero.
In 2021, the Portuguese government announced plans to create “technological free zones” with adapted regulatory regimes to encourage experimentation in artificial intelligence, blockchain and 5G.
Source: Bits
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