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Chile: An Attractive Place to Invest in Mining Exploration. Chilean Mining Council Francisco J. Costabal Chairman March 2008. Key Factors for Mining Investment. ð. Mining Potential. ð. Stable Conditions and Sound Public Policies. Infrastructure. ð. Talent & Skills. ð. ð.
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Chile: An Attractive Place to Invest in Mining Exploration Chilean Mining Council Francisco J. Costabal Chairman March 2008
Key Factors for Mining Investment ð Mining Potential ð Stable Conditions and Sound Public Policies Infrastructure ð Talent & Skills ð ð CHILE HAS ALL THESE COMPETITIVE ADVANTAGES Source: Fraser Institute – Mining Council
CHILE: COPPER PRODUCTION & RESERVES Copper Production Copper Reserves Source: USGS & Cochilco
CHILE: A MINING COUNTRY – GDP IMPACT Source: Central Bank of Chile
CHILE: A MINING COUNTRY - EXPORTS During 2006 Chilean exports reached Mill US$ 58,116 (2005, Mill US$ 41,297) In that period, copper exports were Mill US$ 32,332, representing 55,6% of total exports. (45,7% in 2005) Up to October 2007, Chilean total exports were Mill US$ 57,915 while copper exports represent 56,5% with a Fob value of Mill. US$ 32.752 Source: Central Bank of Chile, Monthly Report, N° 957
CHILE: A MINING COUNTRY - PRODUCTION 1,4 millions 6,15 millions 5,3 millions Increased 4 times • Production of Copper Mine production in Chile reached 5,361 TMT. • Production of concentrates was 3,669 TMT, and SxEw was1,691 TMT. • Smelter production reached 1,565 TMT and Refinery production 1,120 TMT. • Production from private companies was 66.7%. • Copper exports reached 33,351 millions US dollars. Source: COCHILCO
CHILE: A MINING COUNTRY - INVESTMENTS US$ 16,2 billions up to 2011 Note: figures for investment after 2011 are only for projects initiated between 2007 and 2011. Source: Cochilco
CHILE: EXPLORATIONS – ORE RESERVES US$ 2.4 billions were invested in exploration in Chile between 1985 and 2005 Results at 2006: ð Copper known reserves grew up ð 97 million tons in 1985 => 18% world ð 360 million tons in 2005 => 39% world ð Exploration expenses in 2006: US$ 211,2 Millions
Stable Conditions & Sound Public Policies
Stable Conditions & Sound Public Policies • Political Stability • Economical Stability • Social Stability • A growing network of FTA & double taxation agreement • Strong & independent institutions: Government, Parliament & Justice Stable Conditions & ound Public Policies
INFRASTRUCTURE • Good communication, road and airport network • World class port system • Extensive wired country • Digital economy and e-business • Good internet network, electronic banking, e-commerce & good electronic tax system. • A mining Cluster is in place in the North Region of Chile Stable Conditions & ound Public Policies
Talented & Skills • Chile has a talented and well-qualified workforce, with skills that have evolved in line with the demands of the country’s international exposure and integration. • Main demographic, work and educational indicators are: • Population 16.4 million • Workforce 7 million • Educational coverage: • Pre-school 32.4% • Primary 98.6% • Secondary 90.0% • Higher 31.4% • Average labor force schooling 10.5 years • Life expectation 77.5 years • Infant mortality rate 7.8 / 1.000 • However, labor demand & supply in the mining sector is a current and future issue, as it is in the rest of the world.
10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Manufac. Mining & Quarries Electricity, gas, fuel & water Commerce Agriculture, Sylvic. & Fishing Transport & Communic Construction Services Labour Force & Safety in Mining Abut 90,000 people works in mining companies associated to the Mining Council. Considering this total, only 1,1% has suffer labour accidents, being the safest industrial sector Total mining around 3.9%. Members of the Mining Council 1,1% Source: National Statistics Institute (INE)
Disclaimer The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Chilean Mining Council