Logo Gobierno: 160x162px. Ministerio, Subsecretaría, Organismo, etc.:160x145px
CHILEAN COPPER INDUSTRY Insights and challenges
Jorge Cantallopts Director of Research and Policy Planning Chilean Copper Commission
@CochilcoChile
Jun 27th 2017 AGENDA
01 02 03 04
CHILE AND IT´S TIME FOR NEW FINAL THE MINING A CHANGE CHALLENGES – REMARKS NEW VISION 01 CHILE AND THE MINING
Mining Ministry | COCHILCO • Chile, leader in Latin America
.Highest GDP per cápita in Latin America. .Strong presence of FDI (~7% GDP) .Foreign Investment Regime: 3°in the world (EIU 2015-2019) .Global Competitiveness: 35 among 140 countries (WEF, 2016)
Competitiveness Strengths: . Solid institutions . Macroeconomic stability . Human Capital . Financial development
Mining Ministry | COCHILCO Source: InvestChile • A connected country
Access to several markets 85% of Global GDP. 93,8% of exports markets. 65% of world population.
Double taxation Investment protection treaties agreements with with 76,4% of world GDP. 25 countries
Mining Ministry | COCHILCO Source: InvestChile MINING IN CHILE
EXPORTATIONS FOREIGN INVESTMENT 57% 2003-2016 18% 2005-2015
Tax Revenue 18,4% 2003-2016
Mining represent 13% of GDP 2003-2016
Source: Banco Central de Chile, INE and FMI Mining Ministry | COCHILCO * Quarter December 2015 -February 2016 (INE) • Most important world mining reserves
1.5 Canada 4.2% Russia %
4.6% United States 4.2% China
6.4% Mexico
2.8% Zambia
DR Congo 2.8%
11.4% Peru
12.2% Australia
Chile 29.2% 20.8% Others countries
• Main copper reserves. • Important gold, silver, molybdenum and potassium reserves. • Main lithium reserves. Mining Ministry | COCHILCO Source: USGS Mineral Commodity Summaries (2016) • Mineral endowment
Mining Ministry | COCHILCO Source: USGS MineralFuente: Commodity Cochilco, basado Summaries en Maksaev (2016), y otros GFMS (2007). (2016) 02 IT´S TIME FOR A CHANGE
Mining Ministry | COCHILCO COPPER PRODUCTION AND ITS IMPACT IN THE CHILEAN ECONOMY COPPER PRODUCTION AND ITS IMPACT IN THE CHILEAN ECONOMY COPPER PRODUCTION AND ITS IMPACT IN THE CHILEAN ECONOMY 03 NEW CHALLENGES – NEW VISION
Mining Ministry | COCHILCO TREND ON MINERAL POLICY
Mineral policy based on economic development
LOW LEVEL DEVELOPMENT ADVANCED First stage
R+D+i
Exporting mining, services Suppliers and supplies development Economic rent distribution Investment attraction Geological potential and mineral rights
Source: COCHILCO
@CochilcoChile NEW MODEL PROPOSAL
Source: Cochilco Main Goal Creating value
Pillars Mining METS
Productions Productivity Strategies Market Community Share Participations
Government Workers Junior C. Mayor C. NGO Players Universities Providers Codelco S&M Mining and TC
Funding Human Capital Infrastructure Market drivers Environmental Investment Innovations Tech Transf Governance policies Climate
Key Drivers Water Land Electricity
Sustainable basis Geological Communities Environment potential RECOVERING THE MOMENTUM Multiplayer solutions Challenges
Reducing conflicts Workers Environmental permisson system improvement Providers Junior C. Productivity improvement Increase linkages
State Governmet Mayor C. Companies
Universities NGO and TC
S&M Mining REDUCING CONFLICTS 1 2 3 4
Identification Early Knowledge of of actors and consultation Company´s community´s area of and reputation influence participation culture
FACTORS THAT DETERMINES THE RELATION
Expectation Development Natural resources and benefits of local availability and distribution capacities distribution 5 6 7 ENVIRONMENTAL PERMISSON SYSTEM IMPROVEMENT
• Incomplete Not allowed to report process • Missing 19 information Reasons % of projects Solutions: 8% Requirements in a of simpler way project • Lack of s } 23% experience of Big size of projects medium size Create a simple mining miners template for the Medium reports size • Requirements mining presented in a complicated way PRODUCTIVITY IMPROVEMENT
180 400
350 160 • Productivity is behind 300 Chile’s success in the last 140 30 years 250 120 200
TPF 150 100 Commodities’s Super Cycle 100 80 Latin American GDP/ Debt Crisis 50 pc 60 0
Annual TFP growth rate (%) • Aggregate TFP slowdown 1990/2000 2000/2010 2000/2015 since 2000 with Mining Aggregate TPF 2.3% 0.3% 0.1% being one of the biggest sectors Aggregate TPF 2.3% 1.6% 1.4% without Mining
Source: The Conference Board. 2016. The Conference Board Total Economy Database http://www.conference-board.org/data/economydatabase/ 19 INCREASE LINKAGES
Creating value • Providers Development Programs (Alta Ley, FCH, Mining METS Corfo). Producción Productividad • ScienceEstrategias and technology programs(Conycit). Participación Participación de mercado ciudadana • Including providers in the Estado Trabajadores Junior M. Privada mining developmentActores ONG strategy (Cochilco) Universidades Proveedores Codelco PyM Minería e IT
Financiamiento Capital Humano Infraestructura Factores de desarrollo Institucionalidad Gobernanza Transferencia Ambiental Innovación Tecnológica
Factores críticos Agua Territorio Energía
Sustentabilidad del Recursos y Medio Comunidades Fuente:negocio Cochilco minero Reservas Ambiente 04 FINAL REMARKS
Mining Ministry | COCHILCO Chile is in another step
Adding Value is the new goal
Multiplayer solutions are the only way Logo Gobierno: 160x162px. Ministerio, Subsecretaría, Organismo, etc.:160x145px
CHILEAN COPPER INDUSTRY Insights and challenges
Jorge Cantallopts Director of Research and Policy Planning Chilean Copper Commission
@CochilcoChile
Jun 27th 2017