Mining investment in Chile is expected to hit US$105 billion from now until the year 2025, Chile’s Mining Minister Aurora Williams said Thursday.
According to a report that was published by America Economia, Williams made the forecast while speaking at an international mining resource conference in Melbourne, Australia.
During her speech, Williams said about $80 billion would be linked to investments in mining and copper, plus other metals such as gold and silver.
"It is therefore essential for us to develop mining because it provides a portfolio of major projects and has a relative weight in the Chilean economy also important," added the engineer, remembering that this sector represents 60% of Chilean exports , 12% of GDP and contributes over 10% of the national budget,’’ she said.
Williams was asked about the potential impact on mining investment of the weakening Chilean economy, which is expected to expand by 2% this year. That’s down from 4.7% in the last decade.
The 60% drop in imports of mining machinery and construction in the last year, represented the largest annual decline since 2003, and has helped to spark fears about the Chilean economy. Chile accounts for about one third of the world’s base metals supply.
"Chile had a significant consolidation of the mining sector, which in its first stage had to do with the equipment and supplies for the project to materialize, and once realized what happens next is given maintenance and renewal of machinery a rather lower level, "said Williams.
"The low import equipment has nothing to do with the stage where mining projects are" the minister stated.
Mining investment forecasts include $23.5 billion, in allocated funds for Codelco, Chile’s state-owned mining company. The Chilean government is also planning to sell $4 billion in bonds to finance mining projects.