Eduardo Elsztain, head of IRSA Group, is enhancing investments in Argentina’s mining sector while maintaining a close relationship with President Javier Milei. His business empire began in real estate before expanding into agriculture and is now diversifying into mining due to its growth potential. Elsztain speaks highly of Milei, associating with him during his campaign and supporting his spiritual journey.
Eduardo Elsztain, the head of IRSA Group which operates in real estate and agriculture, is now shifting his focus to mining amidst the growth of this sector in Argentina under President Javier Milei’s administration. Elsztain is recognized not only as a successful businessman but also as a spiritual advisor to Milei, having supported him throughout his campaign and beyond, including hosting him at his hotel.
Born in Buenos Aires, 65 years ago, Elsztain’s business journey surged in the 1990s during Carlos Menem’s presidency. He took control of IRSA in 1991, transforming it from a small office into a multi-faceted conglomerate encompassing real estate, finance, agriculture, and now mining. His firm has developed significant assets including 15 shopping centers and the renowned Llao Llao hotel in Bariloche.
In addition to real estate, he invested in agriculture by acquiring Cresud, which operates across Argentina, Brazil, Bolivia, and Paraguay, managing 800,000 hectares of farmland. For the fiscal year ending mid-2024, Cresud produced over 700,000 tons of grains and 9,000 tons of beef. His agricultural ventures have historically been the most profitable sector for his investments.
Elsztain shares a personal bond with Milei, having facilitated Milei’s spiritual reconciliation with Judaism, encouraging him to visit important religious sites. Milei utilized IRSA’s Libertador hotel as his campaign headquarters and stayed there post-election, reinforcing their close association. “President Milei is a young phenomenon who brings change,” praised Elsztain, underscoring his hope in the president’s economic vision.
Despite the tightening economic conditions Austria faces, influenced by a significant economic contraction, certain sectors—like real estate and mining—remain somewhat resilient. IRSA reported a loss of 109.135 million pesos in the last quarter, while Cresud’s profits significantly dropped amidst rampant inflation.
Recognizing the mining sector’s stability, given its 7.1% growth the past year, Elsztain is strategically enhancing his investments in mining. His company, Austral Gold Limited, already has stakes in gold and silver mining operations across Argentina and Chile, with new investments totaling close to $10 million into Challenger Gold for managing Hualilán mine and the Casposo project.
Fueled by favorable government measures and rising gold prices, which saw a substantial increase in 2024, Elsztain’s foray into mining seems promising amidst Argentina’s volatile economic landscape. With analysts predicting further price increases for gold, his strategic pivot aligns with current market dynamics and government support for the sector.
In summary, Eduardo Elsztain is a significant player in Argentina’s economy with deep ties to President Javier Milei. As he pivots his investment focus toward mining—an area showing growth despite economic challenges—his strategies highlight both personal and professional commitments to shaping Argentina’s future. Mining’s potential, combined with political support, positions Elsztain as a key figure to watch in Argentina’s economic landscape.
Original Source: english.elpais.com
