Regulatory framework · RIGI

RIGI Regime Applied to Frac Sand Mining in Argentina

The Régimen de Incentivo para Grandes Inversiones (RIGI) is Argentina's current flagship regulatory framework for attracting large-scale investment across mining, energy and infrastructure. For qualifying projects, RIGI offers tax, FX and customs advantages designed to compete with international peers. Frac sand mining projects in Mendoza and Neuquén can, depending on scale and structure, qualify under RIGI.

What RIGI offers

Per the public text of RIGI, qualifying Vehicles for Large Investment Projects (VPUs) benefit from: a reduced corporate income tax rate with progressive phase-in, accelerated depreciation, tax loss carry-forward extensions, VAT treatment on capital goods, and partial relaxation of FX controls for specific export flows.

Incentive areaRIGI treatment (public text)Applicability to frac sand
Corporate income taxReduced rate for VPUsApplies to qualifying projects
FX controlsRelaxed for export flowsRelevant for USD-denominated supply contracts
Customs / importFavourable capital goods treatmentApplies to processing plant equipment (e.g. CDE Global)
Legal stabilityUp to 30 yearsUnderwrites long-term take-or-pay structures

Minimum investment threshold

RIGI sets a minimum qualifying investment. Frac sand projects at scale (multi-Phase expansions, integrated mine-to-plant buildouts) can meet the threshold individually or through a vehicle consolidating several project stages.

Applicability to In-Basin Sand

The current In-Basin Sand Phase 1 (~US$450K) is below RIGI scale. However, subsequent phases — including the CDE Global 200 TPH wash plant (~US$6.8M CAPEX) and the full build-out toward multi-line capacity — are candidates for RIGI structuring depending on vehicle design and aggregated investment.

Investor implications

For bridge-round holders, RIGI applicability at later phases means future conversion events (Series A, strategic rounds) happen inside a more stable tax and FX framework. That reduces long-term country-risk exposure on converted equity.

Reference text

RIGI is set out in the Ley de Bases (Law No. 27.742) and regulated by subsequent decrees. Investors reviewing the In-Basin Sand opportunity are encouraged to consult the current RIGI text with local counsel.

Bridge round · closing 29 April 2026

In-Basin Sand is running a €150,000 secured convertible bridge closing 29 April 2026. Public landing: https://inbasinsand.com

Last updated: 2026-04-20