Continuing his state reform agenda, President Javier Milei has signed Decree 115/25, converting Yacimiento Carbonífero de Río Turbio (YCRT) into a Sociedad Anónima (Corporation), named “Carboeléctrica Río Turbio S.A.”. This move is seen as a step towards eventual privatization, aligning with Milei’s broader objective to reduce state intervention in the economy.
Strategic Shift Following Banco Nación Reform
The decision comes shortly after the restructuring of Banco Nación, reflecting Milei’s commitment to streamline public enterprises. The newly formed corporation will operate under the General Law of Companies and be supervised by the Ministry of Economy.
- Shareholding Structure:
- 95% controlled by the Secretary of Energy
- 5% by the Secretary of Mining
Background and Economic Context
Located in Santa Cruz, YCRT has been a financial burden on the state, recording a $8.7 billion deficit as of Q3 2024, despite receiving $53.8 billion in national funding. The operational loss for the first nine months of 2024 was $62.6 billion.
- The plant employs 2,100 workers, and the town of Río Turbio heavily depends on the mine’s operations and the adjacent Thermal Power Plant.
Laying the Groundwork for Privatization
YCRT was included in the Bases Law passed by Congress, listing state companies for potential full or partial privatization. The Agency for Public Enterprise Transformation, led by Diego Chaher, is reviewing the fate of 62 majority state-owned companies, 59 minority state-owned companies, and 8 entities in liquidation.
Comprehensive Privatization Plan
Milei’s privatization strategy includes:
- Energía Argentina
- Intercargo
- AySA (Water and Sanitation)
- Belgrano Cargas
- SOFSE (Railway Operator)
- Corredores Viales
- Nucleoeléctrica Argentina S.A.
The list also extends to other major state assets such as Aerolíneas Argentinas, ARSAT, Casa de Moneda, and Banco Nación, among others.
Recent Privatizations Under Milei’s Administration
- Belgrano Cargas Logística S.A.
- Total privatization of the railway freight operator, including all infrastructure and assets.
- IMPSA
- Sold to U.S.-based Arc Energy, linked to Donald Trump.
- Corredores Viales S.A.
- Decree 97/2025 allows private concessions for national route management and maintenance.
- Banco Nación
- Converted into Banco Nación S.A., with the state retaining 99.9% of the shares through the Ministry of Economy, paving the way for partial privatization.
Political Implications and Public Reaction
Presidential spokesperson Manuel Adorni emphasized the administration’s vision by quoting:
“Nothing that shouldn’t be state-owned will remain in state hands.”
These reforms signal significant structural changes in Argentina’s public sector, consistent with Milei’s libertarian economic ideology. His approach aims to reduce public spending, increase efficiency, and attract foreign investment.
What’s Next?
With the transformation of YCRT into a corporation, Milei is expected to accelerate privatization efforts across other strategic sectors. The Ministry of Economy and the Agency for Public Enterprise Transformation will play key roles in managing these transitions.
This bold move reflects Milei’s commitment to reshaping Argentina’s economic landscape, promoting free-market principles, and minimizing state intervention.
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