Eduardo Elsztain is a key Argentine businessman enhancing investments in the mining sector while maintaining personal ties to President Javier Milei. With his background in real estate and agriculture, Elsztain’s ventures align with sectors showing growth in a challenging economic context. His financial strategies could capitalize on promising mining opportunities amid economic contraction in other sectors.
Eduardo Elsztain, the proprietor of the IRSA Group with diverse interests in real estate and agriculture, is increasingly investing in the mining sector, which has shown growth during President Javier Milei’s initial year in office. Elsztain has been a notable supporter of Milei, publicly backing him and hosting him in one of his hotels. Additionally, he accompanied the president on a spiritual journey post-election, further solidifying their relationship.
Elsztain, 65, began his path to business success in the 1990s under the presidency of Carlos Menem, known for his period of neoliberalism in Argentina. He assumed control of IRSA in 1991 and transformed it from a modest company into a substantial group that now includes real estate, finance, agriculture, and mining. Notably, IRSA operates 15 shopping centers and has recently reported a market valuation of approximately $1.2 billion.
In tandem with real estate, Elsztain ventured into agriculture, acquiring the company Cresud since the 1990s. He has amassed approximately 800,000 hectares across Argentina, Brazil, Bolivia, and Paraguay, yielding substantial production in grains like soybeans and beef. However, the overall economic climate in Argentina has faced significant challenges during Milei’s administration, with substantial declines recorded in several sectors.
Despite maintaining connections with previous governments, Elsztain’s ties to Milei are personal and spiritual. During the 2023 electoral campaign, Milei set up his operations at the IRSA-owned Libertador hotel and resided there for several months. Elsztain had also played a crucial role in encouraging Milei’s connection to Judaism, including a significant spiritual trip to New York City.
While Elsztain is hopeful of Milei’s transformative impact on the economy, the administration’s first year has been characterized by severe economic contraction and fiscal adjustment. Notably, real estate activities saw modest growth, while agriculture at large remained stagnant amid pressures like drought. IRSA reported financial losses in 2024, with Cresud’s profits plummeting due to inflation.
Elsztain’s strategic pivot into mining is notable, as this sector reported a 7.1% annual expansion amid an otherwise declining economic landscape. Through Austral Gold Limited, Elsztain invested nearly $10 million to gain majority control of Challenger Gold and its Hualilán gold mine. This decision is further buoyed by government incentives for mining and rising gold prices, with predictions suggesting potential peaks of $3,000 per ounce this year, indicating a promising avenue for investment in a turbulent economic context.
In summary, Eduardo Elsztain’s business ventures reflect a dynamic adaptation to Argentina’s evolving economic landscape, particularly with his increased focus on mining amid challenging conditions for other sectors. His close association with President Javier Milei, bolstered by both professional and spiritual ties, signifies a mutual aspiration for reform and growth. Despite facing significant challenges during the early part of Milei’s presidency, Elsztain’s strategic investments may position him advantageously for future success in the mining realm, especially given favorable market conditions and government incentives.
Original Source: english.elpais.com
