Mining & Investment Insights
Curated interviews, articles and deal case studies that focus on mining investment opportunities in Latin America. Please contact Harry.Williams@gfcmediagroup.com if you have a case study and/or insights to share with the community.
Navigating the universe of Latin American mining projects is challenging, we aim to make it easier. The continent is full of exciting new projects which are looking for investors and partners.
Following a very successful trip to PDAC, the Mining & Investment Latin America Summit team put together a SWOT Analysis of the Latin American Mining industry in preparation for this year's Summit agenda.
Aurora Williams, Minister of Mining, Chile reflects on her tenure and discusses the outlook for the Chilean Mining Sector.
For more than three decades, Chile was the poster child of neo-liberalism, the country that followed diligently the IMF playbook. Such discipline was rewarded with impressive growth and the envy of its Latin American peers. By 2010, pundits predicted that Chile was but a few years shy of becoming Latin America’s first “developed” nation. The latest down-cycle, marked by both low copper prices and the flirting with expanded government, created a new set of obstacles for Chile. The question hovering over voters ahead of the Presidential elections in November is, “Can Chile get its groove back?”
For the past few years Chile has seen its worst economic performance since the crisis of 1981, largely the result of depressed copper prices – which have been falling since 2011. With copper being bested by rivals such as iron ore and nickel, persistent global supply disruptions, and a lack of economic diversification, some have wondered whether Chile could continue to lose out on critical investment to commodity-rich neighbours like Peru.
Unlike other metals, copper prices have stayed around their January lows, which have led Chile’s Codelco to lower its output. This is unlikely to impact copper prices much, as other Andean countries are ramping up exports of the commodity. The weaker fiscal position of Codelco is actually attracting investment, however, as the assets of Andean nations such as Chile and Peru do not offer sufficient returns for some.
Business confidence has been hit in Chile on concerns over the implementation of a number of reforms across the country. However, the positive performance of the Chilean Central Bank and Ministry of Finance has continued to place the country above many of its peers in Latin America. Nevertheless, the performance of the country’s economy remains heavily tied to the price of copper, the leading driver of the Chilean economy.
High levels of oversubscription on Codelco’s local currency bond suggests the country’s local markets remain liquid as its outlook and fiscal situation continues to stabilise.
Chilean Antofagasta is looking to issue a new bond, according to reports. Against the backdrop of the plight of emerging markets, the mining industry is struggling amid a wider commodities slowdown.
17 Apr 2018
13 Dec 2017