Mining boom takes foreign investment to a historic level in 2011Published: January 4, 2011
The authorization in 2010 and 2011 reached US$ 27 billion, 33% of the total amount of the last 12 years.
The authorized foreign investment in Chile recorded historic amounts during 2011. A sum of US$ 13,790 million mainly driven by the mining industry, a sector that today represents 70% of all the authorized investments in the country.
The good prices that the copper reached during 2010 and 2011 driven the entry of foreign capital to encourage the industry. With this, the foreign investment authorization, reached US$ 27 billion these years, which means 33% of the amount of the last 12 years.
In 2010, the mining industry represented 83% of the investment total, being, to date, its best year.
The Vice-President of the Foreign Investment Committee (CIE), Matías Mori, pointed out that from the 88 requests for investment presented this year, 29 were from the mining industry and added US$ 9,600 million. "Chile is eminently a mining country and the mining is very intensive in capital?, he added.
Another sector that shows a strong growth is the service sector, representing the 16.7%.
The energy sector, however, reached 5.9% and has shown a severe drop in the last years, since that at the beginning of the decade, electricity, gas and water (EGA) represented 26% of all the foreign investments in Chile. 2003 was the year with most foreign investment in energy, representing 67% of the general total.
Regarding the countries that want to invest in Chile, he indicated that Canada maintains its leadership, concentrating 59% of the foreign investment in 2011.
However, a strong interest to Asia developed, especially through countries such as Japan, Korea and China. The CIE highlighted that this year for the first time, these countries appear between the 10 main economies that are interested to invest in the country.
But, the good expectations will be maintained. Mori explained that the amount for 2012 should be even greater, even though the international scenario, since Chile is seen as by foreigners as a safe country to attract countries.
"We think that by 2012, in conformity with all foreign reports, foreign investment should increase. Historically, when we see the figures of foreign investment at time of crisis, in Chile these figures tend to increase. It all indicates that it should tend to increase", he said.
Among the projects that boosted the investment the US$ 4,395 million from the Canadian company Barrick stand out, through the affiliate Zaldívar Chile for the project Cerro Casale, and the US$ 1,485 million of Kinross, partner of Barrick in the initiative located in the 3rd region.
Together with these we find the US$ 1,000 million of the Japanese company Sumitomo, in order to become partners in the Sierra Gorda mining project, in the 2nd region. In energy we find the US$ 400 million from the Australian company Pacific Hydro, for the 6th region, and the US$ 170 million that the Korean company Geopark destined for geothermal energy in the 7th region.
Source: La Tercera Newspaper