Eduardo Elsztain: A Key Business Influence in Argentina’s Mining Sector

Eduardo Elsztain, the head of IRSA Group, is bolstering investments in mining amid Javier Milei’s presidency. He has historical ties with Milei, having supported him publicly and hosted him during his campaign. Though the overall economy faced contraction, mining showed growth, prompting Elsztain’s strategic shift to this sector. His ventures, alongside supportive government measures, suggest a promising future despite current economic challenges.

Eduardo Elsztain, the proprietor of the IRSA Group, is making notable strides in Argentina’s mining sector while offering personal guidance to President Javier Milei. Despite economic challenges, mining has thrived during Milei’s administration, prompting Elsztain to intensify his investments. Known for his multifaceted business ventures, Elsztain has supported Milei’s presidency, hosting him in his hotel and participating in spiritual endeavors post-election.

Elsztain, born in Buenos Aires 65 years ago, began his entrepreneurial journey in the 1990s under President Carlos Menem’s governance. His family-owned company, IRSA, founded by his grandfather in 1943, has expanded significantly during his tenure, branching into real estate, finance, and agriculture. Under his stewardship, IRSA evolved into a major player with a market valuation of approximately $1.2 billion and around 800 employees.

Investment in agriculture began in the 1990s through the acquisition of Cresud, which currently manages approximately 800,000 hectares across several countries. This venture produced considerable yields of grains and beef in the last fiscal period, despite the broader economic downturn affecting other sectors.

Elsztain’s relationship with President Milei is characterized by personal mentorship. During the campaign, Milei operated out of IRSA’s Libertador hotel and maintained residence there post-election. Elsztain played a significant role in encouraging Milei’s embrace of Judaism, notably facilitating a spiritual trip to New York. His appreciation for Milei’s leadership has been public, reflecting hopes for economic recovery under his guidance.

Despite optimistic projections, the first year of Milei’s presidency saw a restrictive economic adjustment, causing notable declines in various sectors. Current reports indicate IRSA faced significant financial losses, while Cresud experienced reduced profits due to high inflation impacting both companies. Nonetheless, IRSA’s real estate and Elsztain’s agricultural sectors exhibited relative resilience amid these challenges.

Acknowledging these market dynamics, Elsztain is pivoting toward mining, one of the few sectors reporting growth. His investments include acquiring a majority stake in Challenger Gold, a firm operating in gold mining with promising results anticipated from ongoing projects. Government incentives and surging gold prices bolster this strategic decision, suggesting that mining could yield fruitful returns amidst Argentina’s economic uncertainties.

In summary, Eduardo Elsztain exemplifies a significant business figure intertwining his extensive investments in real estate and agriculture with a growing interest in the mining sector under President Javier Milei’s leadership. His personal relationship with the president, manifested through various support avenues, underscores a deeper connection between business success and political influence. Despite market challenges, Elsztain’s strategic shift to mining, supported by government incentives and favorable market conditions, positions him for potential growth in Argentina’s uncertain economic landscape.

Original Source: english.elpais.com