Mining in Chile: the greatest challenges
With the world experiencing slumping commodities prices, mining in Chile has started to adjust to the new copper price forecast.
The average spot price of copper has fallen 19.8% this year on the London Metal Exchange compared with the 2014 average to US$2.61/lb, according to Chilean state copper commission Cochilco.
As a result, mining in Chile is not only expecting lower revenues from copper this year, but the country as a whole will see its coffers take a hit.
Sonami, the body that groups companies in the business of mining in Chile, has said that for every US cent the annual average price of copper falls, Chile's government loses US$60mn and the value of exports falls by US$128mn.
Additionally, rising power costs and fears over energy security in Chile are negatively impacting mining companies' investment decisions. Numerous power generation projects have been blocked or shelved, while copper miners' energy demands are set to double by 2025. The big firms are looking at their own power projects, which could help bridge the gap but mean more capital outlay for miners.
Meanwhile, mining projects face increasingly high hurdles to development in the form of socio-environmental opposition, resource nationalism, permitting problems and, often, water shortages.
Falling ore grades and many cost pressures are difficult to control, and so producers are focusing on what they can control: labor productivity. Between 2006 and 2012, labor productivity in Chilean copper mining fell 40%, according to the mining council. If you take lower grades out of the equation, the amount of copper processed per worker still fell 26%. During the same period, salaries in Chile's copper-mining sector rose 65%.
WHAT ARE THE SOLUTIONS TO THESE MINING CHALLENGES?
Because of the challenges in the industry today, mining in Chile, and globally, are watching their bottom line. One of the most effective ways of saving money is through improved productivity. This involves adopting new and creative mining technologies and improving communications and relations with local communities, regulatory authorities and the mining workforce.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Mining & Metals (Chile)
Junior exploration roundup: Vizsla, Kootenay, Cabral and more
Companies operating in Mexico, Chile, Brazil, Guyana and Colombia provide updates.
Inclusive approaches to lithium mining in Chile: Indigenous demands and concerns
BNamericas speaks with indigenous adviser and representative Ariel León about demands regarding the Blanco project and the country's lithium strategy.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Mining & Metals (Chile)
Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Cerro Diablo
- Current stage:
- Updated:
34 minutes from now
- Project: Comahue Mining Project
- Current stage:
- Updated:
2 hours ago
- Project: Cerrillos Plant Operational Optimization
- Current stage:
- Updated:
3 days ago
- Project: Mina San Antonio Mine Project, exploitation at 40,000 tons / month
- Current stage:
- Updated:
5 years ago
- Project: New 2x110 kV Vitacura Providencia Underground Transmission Line
- Current stage:
- Updated:
12 months ago
- Project: Operational Modification of Tailings Pullalli Plant Tailings
- Current stage:
- Updated:
3 years ago
- Project: Incorporation of Mining Property - Faena Negreiros
- Current stage:
- Updated:
2 years ago
- Project: Collection and shipment of copper concentrate in Muelle Punta Caleta de Puerto Caldera SA
- Current stage:
- Updated:
3 years ago
- Project: Recovery of stockpiles from the Algarrobo work
- Current stage:
- Updated:
12 months ago
- Project: Rinconada de Alcones
- Current stage:
- Updated:
2 years ago
Other companies in: Mining & Metals (Chile)
Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Excava Holding SpA  (Excava Holding)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Noracid S.A.  (Noracid)
- Company: Anglo American Chile Ltda.  (Anglo American Chile)
-
Anglo American Chile Ltda., the local subsidiary of multinational resource group Anglo American plc, is one of the largest mining companies in the country. As an integrated copp...
- Company: Compañía Minera West Wall S.C.M.  (West Wall SCM)
-
Compañía Minera West Wall S.C.M., a 50:50 JV between Anglo American Chile Ltda. and Glencore Plc, holds the West Wall copper-molybdenum project in central Chile's Valparaíso reg...
- Company: Minera Alto Verde Chile SpA
- Company: SCM Minera Lumina Copper Chile  (Minera Lumina Copper Chile)
-
Chilean miner SCM Minera Lumina Copper Chile (SCM MLCC) is a joint venture between Japanese companies Pan Pacific Copper (PPC) and Mitsui & Co., Ltd. It owns and operates the Ca...
- Company: Minera Los Halcones SpA
- Company: SIOM SpA  (SIOM Minería)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Rocio Pilar Ramirez Yagnam