Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Chile’s finance minister, Felipe Larrain, said Monday the government is handing state-owned miner Codelco an extra $1 billion in financing to help the world’s No. 1 copper producer move forward with its decisive investment plans.
Local newspaper La Tercera (in Spanish), reports the early Christmas gift comes on top of the $1 billion the government had said in July it would return to the mining company, which was considered insufficient by Codelco at the time.
The copper giant gives all its profits to the state and had been severely disappointed by the original amount of money it was returned.
As a result, the copper giant decided to seek outside financing to implement its $27 billion investment plan for 2012-2016, and placed a $750 million bond in August.
Chile expects mining investment to reach $112 billion by 2021, figure that includes the $27bn planned by Codelco. By the same year, the country’s total copper production is projected to reach an annual 8.1 million metric tons.
The red metal accounts for 60% of Chile’s exports and 15% of gross domestic product.
Comments
ed martinez
Chile is not only the world’s No. 1 copper producer moving forward with its decisive investment plans, but a well-organized country, a reliable and serious business partner with a competitive human capital at home.
My hope is that many more private investors consider Chile as one of their partners in many other fields. They will not be disappointed. There are many good reasons to smile when dealing and wheeling in Chile.