Non-metallic mining in Valle Fértil, about 250 kilometers east of the city of San Juan, is going through a complex period, marked by the contraction of calcium carbonate sales and an incipient recovery in quartz demand.
By Panorama Minero
This was explained by mining producer Sergio Botella, a member of the company Botella Hermanos, who analyzed the current situation of the sector and the economic factors that condition its performance.
The company, which began its activity focused on the extraction and commercialization of quartz, gradually incorporated the production of calcium carbonate as one of its main lines. However, over the last two to three years, this segment has shown sustained deterioration. Although prices remain relatively stable, the central problem is linked to the sharp drop in consumption and the reduction of purchase quotas by clients.
In terms of volume, the decline is significant. Botella Hermanos went from marketing around 3,500 monthly tons of calcium carbonate to figures of around 2,000 tons, with exceptional months in which barely more than 500 tons were exceeded. This level of sales is insufficient to sustain the operating structure, since the company’s break-even point is around 1,500 tons per month, considering labor, logistics, and general costs.
The calcium carbonate produced in Valle Fértil has multiple industrial applications, mainly in the manufacture of paper, paints, plastic putties, and products derived from plastic and nylon. In the case of Botella Hermanos, one of the main destinations of the mineral is Chile, through companies such as Calidra –formerly Minera TEA–, while another part is marketed in the domestic market through Camisaju –Cargas Minerales San Juan S.A.–, based in the Media Agua area. Part of that local production is also destined for the neighboring country.
The decline in activity does not affect only this company. According to the producer’s analysis, Ceras San Juan S.A., the other major calcium carbonate operator in the province and a neighbor in Valle Fértil, also records a sharp downturn. After having reached monthly volumes of between 2,500 and 3,000 tons, the firm would have decided to drastically reduce its activity during the summer, partly due to stock accumulation and partly due to lower market demand.
In contrast with this scenario, quartz is beginning to show some signs of reactivation after several years of stagnation. The improvement is mainly driven by the resumption of consumption by the Globe Metales plant in Mendoza, which once again became the main driver of demand. Added to this are more stable clients in San Luis and Córdoba, which provide continuity, although with moderate volumes.
This slight upturn allowed some producers to resume operations. Currently, the circuit of quartz producers in Valle Fértil is reduced and is made up of Botella Hermanos, Villafañe, Lucero, and Iván Sánchez, with limited sales quotas but active. In total, the sector has five producers: two dedicated to calcium carbonate and three to quartz, with some firms participating in both segments.
The partial reactivation of quartz also has a positive impact on transportation and local employment. In the case of Botella Hermanos, the company provides logistics services and was able to put part of its fleet back into circulation, generating economic activity and sustaining sources of employment in the community. On average, each venture in the sector employs around eight people.
Beyond the particular situation of each mineral, the producer’s analysis points to a problem linked to the domestic economy. Lower activity in construction, the reduction of private works, and the stoppage or slowdown of housing developments directly affect the decline in demand for paints and associated materials, directly impacting the consumption of calcium carbonate.
The external scenario also offers no clear signs of recovery. Exports to Chile, which at other times reached volumes close to 2,000 tons per month, have also been significantly reduced. Added to this is the growing competition from low-cost imported products.
In this context, non-metallic mining in Valle Fértil is sustained by a fragile balance, marked by erratic sales and unstable demand. Nevertheless, the incipient movement in quartz appears as a moderate sign of relief for a sector that plays a key role in regional economies and that, despite the difficulties, seeks to maintain its activity and preserve local employment while awaiting a more favorable macroeconomic scenario.
