Survey: Pessimism grows in Chile's mining sector

A survey of 130 executives from mining companies and suppliers in Chile showed a fall in expectations over the next two years. 

Of those consulted, 78.5% consider the current economic situation unfavorable and 76.2% describe the social scenario as negative, the latest Señales de Minería study produced by copper studies center Cesco and consulting firm Vantaz Group shows. The low perception is influenced by the regulatory and environmental scenario, according to the study.

The responses in what is the fourth version of the study and collected during September and October were generally more pessimistic than last year.

Despite the boom in demand caused by the energy transition, only 34.6% of respondents believe that the price of copper will increase in the next two years and just 40% said lithium carbonate prices will rise in the same period.

Issues such as the mining royalty bill and complex environmental permitting that create uncertainties and obstacles to the development of projects contributed to the results of the survey, Daniela Desormeaux, director of studies at Vantaz Group said in a statement.

Pessimism also prevails regarding mining investment, with 36.2% of respondents believing it will fall over the next two years, compared to 17.7% who said it will increase.

Among the main challenges highlighted in the study are increasing the competitiveness of the industry, strengthening public institutions, unlocking exploration, having skilled human capital and advancing towards green mining.