Chile's Copper Mining Boom: $43 Billion in Investments Anticipated

Strategic Insights -

Chile is set to witness a massive influx of investments in copper mining, with an estimated $43 billion pouring in for copper or gold mining projects in the 2009-2015 period. This boom is fueled by the country's copper giant, Corporacion Nacional del Cobre de Chile (Codelco), which is expected to receive nearly $21 billion of the total investment. Meanwhile, gold mining projects such as Barrick Gold Corp.'s (ABX) Pascua-Lama and Cerro Casale deposits are anticipated to receive $3.8 billion in investments. This surge in investment is expected to catapult Chile's copper output in 2020 to 38% higher than what it produced in 2008, with the country producing 7.38 million metric tons of copper in 2020.

Key Takeaways:

  • Chile is poised to receive an estimated $43 billion in investments for copper or gold mining projects in the 2009-2015 period.
  • Corporacion Nacional del Cobre de Chile (Codelco) is expected to receive nearly $21 billion of the total investment, primarily for copper mining projects.
  • Barrick Gold Corp.'s (ABX) Pascua-Lama and Cerro Casale deposits are anticipated to receive $3.8 billion in investments for gold mining projects.
  • Chile's copper output in 2020 is expected to be 38% higher than what it produced in 2008, with the country producing 7.38 million metric tons of copper.
  • Key new copper projects expected to come online during the period include Antofagasta PLC's (ANTO.LN) Esperanza, Pan Pacific Copper's Caserones, and Barrick and Xtrata PLC's (XTA.LN) El Morro.
  • Expansions at mines such as Codelco's Andina division, Anglo American PLC's (AAUK) Los Bronces, BHP Billiton Ltd.'s (BHP) Escondida, Xtrata and Anglo American's Collahuasi, and Antofagasta's Los Pelambres mine will also contribute to Chile's increased output.

Statistics:

  • Estimated investments for copper or gold mining projects in Chile: $43 billion (2009-2015 period)
  • Codelco's share of total investment: approximately 48.6% ($21 billion of $43 billion)
  • Anticipated copper output in 2020: 7.38 million metric tons
  • Increase in copper output in 2020 compared to 2008: 38%
  • Total global copper output (as a percentage): Chile's output is expected to be approximately 35% of total global output in 2020

Sources:

  • Dow Jones Commodities News via Comtex
  • Cochilco
  • Barrick Gold Corp. (ABX)
  • Antofagasta PLC (ANTO.LN)
  • Pan Pacific Copper
  • Xtrata PLC (XTA.LN)
  • Anglo American PLC (AAUK)
  • BHP Billiton Ltd. (BHP)
  • Dow Jones Newswires (Dow Jones & Company, Inc.)