Eduardo Elsztain: The Businessman Behind Javier Milei’s Economic Vision
Eduardo Elsztain, a prominent businessman in Argentina, has shifted his focus to mining investments amidst his close ties with President Javier Milei. His IRSA Group, which spans real estate and agriculture, has faced economic challenges but looks to capitalize on the growing mining sector. Elsztain’s strategic decisions are supported by governmental incentives and rising gold prices, promising potential growth in an uncertain economy.
Eduardo Elsztain, the head of the IRSA Group, has set his sights on investing in mining, a sector that has shown growth during the first year of Javier Milei’s presidency. Elsztain, who has extensive interests in real estate and agriculture, is known for his close relationship with Milei, demonstrating both public support and personal involvement, including facilitating spiritual journeys for the president after his election.
Born in Buenos Aires, Elsztain began his rise to business prominence in the 1990s, under the administration of Carlos Menem. The IRSA Group, initially controlled by Elsztain in 1991, evolved from a modest office to a major conglomerate, encompassing various sectors including real estate, finance, and agriculture. Currently, IRSA employs around 800 individuals and boasts a market value of nearly $1.2 billion.
In addition to real estate, Elsztain significantly expanded his agricultural operations through the acquisition of Cresud in the 1990s. This firm currently manages approximately 800,000 hectares across South America, producing substantial quantities of grains and beef, showcasing Elsztain’s successful diversification into lucrative agricultural ventures.
The personal bond between Elsztain and Milei has become particularly notable. During the 2023 election campaign, Milei stayed at the Libertador hotel, owned by IRSA, for two and a half months. Elsztain also played a pivotal role in encouraging Milei’s exploration of his Jewish heritage, including a spiritual visit to New York before the elections, further solidifying their alliance.
Despite challenges in the Argentine economy, particularly under Milei’s drastic fiscal policies, Elsztain remains optimistic about the economic potential. While many sectors witnessed declines, the real estate sector achieved minor growth. In contrast, IRSA’s financial report showed significant losses, indicating the economic hurdles his businesses are facing.
Elsztain’s plans to enhance his investment portfolio in mining — one of the few sectors that thrived during the economic downturn — reflect a strategic move towards growth. The mining sector saw a 7.1% growth, which Elsztain capitalized on by acquiring a majority stake in Challenger Gold, managing the Hualilán gold mine, with additional development taking place at the Casposo project.
With supportive government incentives and rising gold prices, Elsztain’s focus on mining appears to be a timely and advantageous decision. As analysts predict further increases in gold values, this investment strategy could yield significant returns amidst the country’s economic uncertainty.
In summary, Eduardo Elsztain is a notable Argentine businessman leveraging his close association with President Javier Milei to expand his investments into the mining sector. Despite the economic challenges faced by his other enterprises, his strategic pivot towards mining, coupled with government support and favorable market conditions, positions him for potential success. His enduring influence on Milei is underlined by their personal and professional connections, marking him as a pivotal figure in Argentina’s economic landscape.
Original Source: english.elpais.com
