REPORT: Mining Investments for Chile to Reach $105 Billion By 2023
Chile’s mining industry is heating up. According to a new report by the state copper commission Cochilco, investments in the country’s mining sector are expected to reach $105 billion between 2014 and 2023.
Of the total investment, it’s reported $81 billion will go towards the copper industry while $23 billion will be used for gold, silver, iron ore another industrial mineral projects.
The massive investment will also include $28 billion in allocated funds for Codelco, the state-owned copper mining company, for new mines and the expansion of one of its major projects.
"Certain projects are currently facing delays," Cochilco executive VP Sergio Hernández said.
According to Hernández, some projects may be running behind schedule as a result of delays in securing permits or meeting new environmental and social standards, but nothing has been terminated.
"There are no trust issues here; mining investors are confident. No project has fallen through.”
Mining investments in Chile will feature 14 companies that are looking to implement medium or large-scale mining projects in the country for the first time, according to the report by Cochilco.
The planned investment will also include nine new mining projects with an estimated investment of $8.9 billion, including seven for copper.
Cochilco said once all projects are completed, the country’s copper production will exceed six million tons by 2015 and eight million tons by 2025. Gold production is expected to rise as well, increasing by 191 percent to 149,480kg a year.
Chile, the world’s top copper producer, has been battling sliding prices, rising costs and falling ore grades.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.