With the withdrawal of the national government from the Board of Directors, the Vice Governor compared YMAD’s potential to that of YPF at the national level. The mining company could diversify into wind and geothermal projects and leverage its tunnel infrastructure.
By Panorama Minero
Vice Governor Rubén Dusso commented on the withdrawal of the national government from the Board of Directors of YMAD (Yacimientos Mineros de Agua de Dionisio), a move that resulted in Catamarca assuming control of the company. In this context, Dusso drew a parallel between YMAD’s situation and that of YPF at the national level. The state-owned oil company, in addition to being a national flagship abroad, has diversified its investments in order to remain at the forefront of Argentina’s energy matrix, expanding into solar, wind, and lithium-related activities. According to Dusso, under Catamarca’s leadership, YMAD could draw on its accumulated experience to advance other projects beyond mineral extraction at Farallón Negro.
“YMAD, by having local leadership, in some cases had presidents who, although they were from Catamarca, were appointed by the national government. When we signed the new agreements with the National University of Tucumán, it became clear everything that can be done from YMAD. It functions, in a way, as if it were our YPF: a large provincial company, with the capacity to do everything within its reach,” said the President of the Senate of Catamarca in remarks to local media.
The Vice Governor highlighted YMAD’s potential to develop new activities beyond mineral extraction. “Few people know the number of meters of tunnels that exist within the Farallón Negro operation; there is nothing comparable in the country. As a result, there is expertise in tunnel construction that is developed and concentrated within the mine,” he explained. Currently, YMAD extracts gold, silver, and manganese at Farallón Negro and holds a stake in Minera Alumbrera, which is expected to resume production in 2028.
Continuing his analysis of potential YMAD investments, Dusso raised the possibility of the company becoming an “environmental asset” through the development of renewable energy projects in the province. “YMAD and the Province of Catamarca have access to the mining line located in Campo del Arenal. Based on that asset, YMAD could develop an environmental asset, such as a park or a large wind farm,” he said. The official also pointed to the potential of geothermal energy in the Antofagasta and Tinogasta areas. “It is base-load energy that is available 24 hours a day, 365 days a year,” he noted as another possible line of development for the company.
Chronology of the Negotiations
The withdrawal of the national government from YMAD’s Board of Directors marks a structural change in the leadership of the state-owned mining company. Until now, the board was composed of representatives of the national government, the Province of Catamarca, and the National University of Tucumán (UNT). With the national government’s decision to withdraw, Catamarca assumes full control of the presidency and strategic management of the company, which has been operating since 1958 and is primarily known for the Farallón Negro operation and its participation in Bajo de la Alumbrera.
The national government’s exit from the Board of Directors was the result of an extended negotiation process between the Province of Catamarca and the national government. This process also included the transfer of the Minas Capillitas complex to the state-owned mining company CAMYEN (Catamarca Minera y Energética), in exchange for the Province dropping lawsuits against the national government.
Negotiations began at the end of 2024 and concluded in December of last year with the signing of a series of agreements between Catamarca, the UNT, and the national government. On December 14, Catamarca and the UNT signed an amendment to the 1958 “Farallón Negro Agreement,” under which the company was structured with a 60% stake held by the Province of Catamarca and a 40% stake held by the National University of Tucumán, with the possibility of agreeing on future additions or withdrawals of partners.
Regarding governance, the new framework provides for a Board of Directors composed of five members: a president, appointed by the Province of Catamarca, and four directors, of whom two are appointed by Catamarca and two by the University.
The authorities also signed a settlement agreement that brought an end to the lawsuit filed in 2016 by the National University of Tucumán against YMAD, related to the claim over the university’s participation in the company’s profits.
These agreements were subsequently endorsed by the Provincial Legislature of Catamarca and by the Governing Council of the UNT. Finally, on January 2 of this year, the national government issued Decree 2/2026, formally completing its withdrawal from YMAD.
A Brief History
YMAD’s history dates back to the discovery of the Farallón Negro deposit by chemist and explorer Abel Peirano of the National University of Tucumán in the late 1930s. On June 7, 1958, the “Farallón Negro Agreement” was signed in the halls of the National Senate in Buenos Aires, laying the foundations for the creation of the company. The National Congress subsequently passed Law 14,771, which established Yacimientos Mineros de Agua de Dionisio (YMAD) as an interjurisdictional company.
In 1959, YMAD began operations with headquarters in Catamarca, although mining activities at Farallón Negro did not commence until 1978. A significant milestone was reached in 1983, when YMAD achieved financial autonomy and ceased to depend on contributions from the national government. Later, in 1994, the company signed a Temporary Union agreement with Minera Alumbrera Limited for the exploitation of the Bajo de la Alumbrera deposit, a project that operated until 2018.
