Chile's mining sector reinstates projects worth over US$ 15 billionPublished: October 22, 2009
Investors are optimistic about the positive figures in the mining sector, which have improved along with the economic recovery. Above all, the main export product has been copper.
The mining sector hopes to reinstate initiatives of approximately US$15 billion. In comparison, initiatives in the fourth quarter of 2008 were US$ 50.9 billion.
Codelco modified its investment in Andina Phase I from US$ 734 million to US$ 992 million, which will be implemented in the second half of this year and continue through the middle of 2010. Additionally, the Radomiro Tomic Phase II project has an estimated total investment of approximately US $370 million.
Meanwhile, the private mining sector hopes to commence the Escondida Phase V project, which has an estimated investment amount of US$ 3.3 billion. Additionally, there is a desalination plant project, which has an estimated investment of US$ 3.5 billion.
Freeport-McMoRan Copper & Gold decided to continue their Sulfolix project, which will extend the useful life of the El Abra copper mine. Freeport-McMoRan controls 51% of the mine and the remainder is controled by state-owned Codelco, which is contemplating an investment of US$ 600 million.
The mining company Doña Inés de Collahuasi, controlled by Anglo American and Xstrata Cooper, has a project valued at US$ 750 million and is currently in the environmental evaluation stage. The project looks to increase the annual production of copper concentrate from the current 440,000 tons per year to between 600,000 and 650,000 tons per year.
Additionally, Anglo American will continue with the expansion of the Los Broncos mine. The total investment will be US $1.4 billion, which includes the construction of the Barro Alto nickel mine in Brazil.
Copper exports start to recoverThe central bank declared that Chile copper exports totaled US $2.567 billion in September, which is a 54% annual increase from the same month in 2008.
Chile, the world's largest copper producer, has seen a gradual recovery in metal prices in recent months, after suffering a serious setback last year due to the effects of the global crisis.
September figures show that shipments of copper in the first nine months of the year have totaled US $17.8 billion, a decrease of 36.3% in respect to the same period last year.
The miners union from the National Mining Society (Sonami) has estimated that the value of Chilean copper exports would reach approximately US $20 billion this year. In 2008, copper shipments totaled US $32.8 billion.
The copper industry in Chile is led by Codelco and Australian company BHP Billiton. Additional industry participants include Antofagasta Minerals, Anglo American and Freeport-McMoRan Copper and Gold Inc., among others.
Sources:
www.mch.cllta.reuters.com