The Argentine province of Neuquen plans to seek bids for mining exploration concessions in five new areas showing the promise of gold, coper, silver and zinc reserves, according to local news site Rio Negro Online.

Provincial mining company La Corporacion Minera del Neuquen, or Cormine, will offer the concessions on 78,000 hectares on which it holds exploration rights.

While the area has shown promising results, "it now rests with the private investors to determine if there are enough (mineral deposits) for developing a mine," Cormine President Martín Irigoyen told Rio Negro Online.

However, the province may have a hard time attracting much interest in the concessions. Exploration has stalled across the region due to tight credit and the low price for many metals due to the international financial crisis.

In addition, there is often stiff resistance to mining projects in the rugged Andean province, better known for ski slopes and adventure tourism than industry.

The local legislature is debating two bills right now that would greatly limit exploitation opportunities. One would ban open pit mining, while the other would prohibit the use of chemicals such as cyanide, mercury and sulfuric acid at mines near water. The chemicals are commonly used to process minerals.

Mendoza, Tucuman, Rio Negro, San Luis and Cordoba provinces have passed local laws prohibiting open-pit mining using the chemicals. La Rioja recently lifted a similar ban.

In addition, the local Mapuche Indian community in Neuquen has put up stiff resistance to attempts to develop the Majuida mine, winning a restraining order in December 2008 to block the project.

Neuquen exported just $8 million in minerals, but saw $13 million in exploration investment last year, according to provincial mining minister Carlos Portilla.

The province has also shown some promising potassium deposits, attracting attention from a handful of companies including Vale do Rio Doce (VALE), Portilla said.

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