The top 100 companies leading investment process in Chile
18-06-2012 La Tercera – Noticias
As per a Sofofa survey for 2012-2020, US$173 billion investments are yet to be executed in construction and other potential works Mining and Energy are leading this process being Antofagasta the region to get most of resources
Worldwide economy uncertainty has not discouraged private and public local investors to undertake new initiatives. This is the situation reported in the last issue of “Observatorio de la Inversión” (“Investment Observer”) bulletin issued by SOFOFA (Chilean Federation of Industry). The survey has revealed that the top 100 companies with highest investments in Chile have plans and initiatives already set for US$173,260 million for 2012-2020 period, most of which would benefit the Chilean regions.
Ranking is headed by the state-owned Codelco and lead by mining and energy sectors which are in the first 13 positions gathering more than 80% of committed investment.
Survey considers 389 large size projects in different progress stages: In construction (138), to be executed (192), and potential (feasible) projects (59).
Sofofa states this ranking provides important signals. “Mining sector represents the driving motor of economy. Its expansion calls for increased activity of other sectors such as industry, construction, commerce, housing, and services like transportation, health, education, training, and financial services”, Andrés Concha, President of Sofofa Federation, explains. However, he adds, “investments in energy, public works, and telecommunications are also boosting. All this is aimed at improving productivity levels of economy which is a positive support to increase competitiveness of productive activities”.
Notwithstanding, as reported by Sofofa and in spite of the good disposition the companies have shown to invest in the country, industrial sector potential to make projects come into the light has been reportedly affected by two factors: Increase of supplies costs, mainly energy and labor, and the opposition of citizenship to some of those initiatives.
“The level of projects that have obtained environmental approval or are in the process of obtaining approval exceeds US$ 80,000 million. What is a rising concern are the oppositions and difficulties of diverse origin that delay the beginning of works”, Concha asserts.
Investment origin
From the total resources committed up to 2020, 75.5% is from private-origin projects while public and public-private joint ventures represent 17.7% and 6.6% respectively.
By progress status it may be mentioned that 47.9% of projects are in the “to be executed” category, reaching US$ 82,916 million and including projects with environmental permissions already approved or going through approval process.
On the other side, projects amounting to US$ 35,640 million are in the construction stage (equivalent to 20.6%) and other initiatives for US$ 54,703 million (representing 31.6%) are classified as potential investments.
Greatest capitals
Following the trend of previous periods, investment process forecasted for next eight years is lead by energy sectors accounting 139 projects and mining with 96 projects followed by infrastructure gathering 82 projects, industry 28; services 23; commerce 12; telecommunications 6; tourism 3.
However, when considering the involved capital the order of sectors heading the ranking changes. Then, mining is gathering most of resources allocation with US$90,217 million, equivalent to 52.1% of total surveyed. Under this concept the projects being developed by the different divisions of Codelco stand out where all added up reach US$26,416 million positioning the state-owned company in top of the ranking of 100 most important investors.
The state-owned mining company includes the Andina expansion requiring US$6,400 million; Radomiro Tomic sulphides mining Stage II for US$5,000 million; the Chuquicamata underground project that will require US$3,620 million, and the New El Teniente Mine that will need US$ 3,100 million.
Following in the second position is Minera Escondida – BHP Billiton – with projects for US$12,166 million. In the 2010 issue of this survey the Australian mining company was in position 12 of ranking. Currently their projects portfolio includes expansion of extraction capacity and mineral processing that will require US$3,500 million.
Back in the ranking, in third position, is Minera Doña Inés de Collahuasi owned by Angloamerican and Xstrata with US$10,357 million, and Quebrada Blanca – Teck Cominco – in fourth position with US$9,802 million.
On the other side, energy sector represents 29.7% of survey with US$51.512 million. In energy area the projects portfolio is lead by HydroAysén owned by Endesa Chile and Colbún reaching US$7,500 million which includes construction of 5 hydroelectric plants and transmission line. The electric power mega project that is expected to develop in the Aysén Region is in fifth position of global ranking.
Farther back in the seventh position in energy sector is the Castilla thermal-electric complex owned by EBX Group linked to Eike Batista – Brazilian businessman – requiring US$5.000 million investment.
Spanish Ibereólica with renewable energy generation projects amounting to US$4,262 million, U.S. AES Gener with US$ 4,023 million, and Enersis Group, Endesa and Chilectra Matrix, with projects amounting to US$ 3,563 million are also mentioned in the Sofofa survey amongst the companies with highest investments in energy.
Besides, infrastructure is reported as the third sector in the economy to receive resources. The survey reports that projects to be developed in the area amount to US$12,603 million. Construction of Lines 3 and 6 in Metro Subway jumps out.
Following by sectors arrangement are industry (US$5,913 million), telecommunications (US$5,002 million), services (US$4,082 million), and commerce (US$3,122 million).
