Mining investments portfolio for 2020 rises 56% to reach US$104,300 million
17-Jul-2012 El Mercurio – News
Last survey made by Cochilco showed US$37,400 million rise with respect to 2011 estimates:
Mining investments portfolio for 2020 rises 56% to reach US$104,300 million
Antofagasta Region leading the list with 37% of investment initiatives Thirteen new projects gathered up and increased projection to US$22,592 million
In spite of all restrictions the mining sector is facing ensued from energy and water supply, mining projects have continued strongly developing.
In accordance with the last survey carried out by Chilean Copper Commission (Cochilco for its acronym in Spanish) in 2012 mining initiatives in the sector estimated for 2020 showed a rise of 56% with respect to 2011 report.
As reported in the survey issued by the state institution, investments in mining will reach US$104,300 million by the end of decade, which is US$37,400 million higher than US$66,890 million expected for projects included in previous analysis.
Minister of Mining, Hernán de Solminihac, said that the increase may be explained by the addition of new initiatives to the list along with modifications in some operations costs increments.
“Explorations and investment decisions are very active in the country today. Although some projects where works have already started were taken off from survey, other projects were added thus increasing estimates to US$104 million for this decade”, he asserted.
As to the new initiatives (totaling 13) the amount added in 2012 reaches US$22,592 million. These new initiatives include Los Pelambres IV Expansion, Lomas Bayas III, and El Espino mines in the copper production segment.
As for gold mining some projects such as Caspiche, Volcán, Arqueros, and Jerónimo, added this year to the survey. Finally, for non-metallic mining projects Coya Sur nitrates plant, and Pampa Blanca and Cerro Negro expansions may be also mentioned.
Additionally, 16 projects increased their investment costs with respect to 2011 resulting in a US$8,654 million increase. In contrast, ten initiatives withheld their initial estimates while five were taken off from 2020 portfolio because their works already started, thus totaling US$3,859 million. In the latter segment some projects such as El Abra, Escondida’s New Bioleaching Pile, Los Bronces Expansion, and Collahuasi Phase 1 Expansion appear.
In accordance with Cochilco’s estimates new copper projects will boost the total production in Chile to exceed the current 5.3 million tons and go to 8.4 million tons of copper fines for 2020. This represents a 58% increase.
As regards to origin of mining investments during this decade, 44% come from Chilean capitals followed by 28% from Canada, 10% from Japan, and 4.7% from Swiss.
Antofagasta Region gathers most of investments concentrating 37% of total mining investment in the country.
More workers needed
This increment will also call for increased number of workers for mining area. It is Solminihac’s opinion that in order to meet higher production needs about 75,000 new positions will be opened in mining industry, 80% of which will have technical profile definition.
In order to accomplish this objective, Mining Ministry and Labor Ministry are promoting the creation of new technical specialized careers to be available as education alternatives.
