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While Mr Melella has celebrated Argentina’s partnerships with China in the past, his office has rejected allegations that he is allowing Beijing to build a port in Ushuaia.
Alejandro Aguirre, Tierra del Fuego’s Secretary of Hydrocarbons, said the article reported by Infobae.com in Argentina had “no basis whatsoever”.
Mr Aguirre claimed the government is “working towards an understanding” with China, but around a “public knowledge” investment of $1.4 billion (£1.2 billion).
The investment is “in the hydrocarbon sector and its industrialisation”, not the “installation of a military base, or anything of the sort”, he added.
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