Government puts in uncertain condition the 72% of the investment portfolio of mining
At the annual portfolio review, US $ 75,100 million are in lower advance stages or do not yet have an environmental permit. This is 10% more than the previous version.
Up eleven percentage points from the figure that handled the previous government, revealed the list of mining projects that have low likely to develop in the medium term, according to the Project Portfolio Mining Investment 2014-2023, prepared by the Chilean Commission Copper (Cochilco).
The survey provides that there is US $ 75,100 million in initiatives in categories “possible” and “potential”, equivalent to 71.6% of total investments projected for the period.
The agency explained that both classes grouped to initiatives that are in stages of feasibility, suspended feasibility or feasibility of undisclosed environmental qualification resolution (RCA) generally is not approved (or is pending) and the date of implementation is not clear.
The amount involved in the projects that are in this category grew 10% from the census of 2013, when they reached USD $ 68,600 million, equivalent to 61% of the time.
In more advanced stages and, therefore, most likely to materialize in the medium term (2014-2018) there are US $ 29,700 million, which is 32% lower versus the US $ 43,900 million recorded in 2013.
This decrease is explained by the strong decrease of the initiatives listed as “base”, which are those that are running or have environmental permit approved. This category dropped nearly $ 10,000 million, which is justified in part because Ministro Hales, Caserones and Sierra Gorda, began their operation and left the land survey.
Broadly speaking, the overall portfolio increased from $ 112,556,000 million in 2013 to $ 104,851,000 million this year.
This low is because there is US $ 6,848 million in operation and other US $ 8,100 million that are discounted because they were restructured (two AMSA projects joined).
This year joined US $ 8,962 million from new projects.
Optimistic Outlook
The Executive Vice President (TyP) from Cochilco Sergio Hernández, said that investments most likely to materialize are equivalent to $ 30,000 million, which were implemented between 2009 and 2013.
“Despite all the noise that has mining –energy Costs or lack of labor-it is still a gigantic and very confident in the conditions the country has submitted for mining investment push,” he emphasized.
He added that he sees a “small” delay is in time, but that the portfolio remains very similar to 2013, “The pipeline has not fallen,” he said.
Consistent with this data, the Undersecretary of Mining, Ignacio Moreno, favorably evaluated the outcome, as he said, it demonstrates the potential and dynamism of this industry.
“This shows a certain stability in the mining sector, which is positive, although there are some projects that are a bit behind compared to its initial schedule, but basically by decisions of companies,” he said.
Asked about showing up the most uncertain categories, he said “the portfolio has always had a significant degree of uncertainty.”
He said that majority of the US $ 112,000 million registered at last year corresponded to projects without RCA. “The path of these projects is quite long and yes, we have seen that some have been delayed by business decisions or complexities of the projects,” Moreno said.
Hernandez added that this situation has been in mining projects is happening in other countries, so there are no problems in confidence in Chile.
Source: Diario Financiero
