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Chile Mining Report Q1 2014 - New Market Study Published


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2013-12-27 10:45:51 - New Materials research report from Business Monitor International is now available from Fast Market Research

We forecast Chile's mining sector will grow at a moderate pace through 2017, though more slowly than in previous years. Major miners will continue to develop several large projects, though rising costs and falling prices will lead to more conservative expansion and acquisition plans. Our forecast is for Chile's mining sector to expand by 1.6% on average per annum from 2014 through 2017.

The Chilean mining sector will continue to rely on copper production for the foreseeable future, with it accounting for 60% of the country's total exports. The pipeline of copper projects and the country's global dominance in copper production will ensure the country's lead despite falling ore grades and more modest production growth. With future global supply looking relatively

robust though and Chinese fixed asset investment slowing, we forecast falling demand growth and hence lower prices. Indeed, we see prices averaging US$6,800/tonne in 2014, which will heavily affect the Chilean economy. Despite weakness in 2013, copper prices remain elevated by historical standards, encouraging production for the time being as major miners and smelters maintain profitability

Full Report Details at
- www.fastmr.com/prod/754494_chile_mining_report_q1_2014.aspx

Precious Metals To Contribute To Growth

Chile's mining sector will also see investment in gold and silver mining, diversifying the sector away from copper. We forecast Chile's gold output will grow by an annual average rate of 2.3%, reaching 1.76moz (mn ounces) by 2017. Gold's share of Chile's mining exports in US dollar terms rose from 1.4% in 2007 to 3.5% in 2012. Though we forecast prices to continue to weaken, averaging US$1,250/oz in 2014, various projects remain in the development stage. However, the largest such, Barrick Gold's Pascua Lama mine, was indefinitely suspended due to rising costs and legal challenges. Goldcorp though continues to develop a major gold project, although the firm may experience further delays. Codelco and Antofagasta, among others, have reported rising labour, energy and water costs forcing the companies to increase pre-production expenditure estimates on mine projects. These factors, in addition to falling prices, are leading some firms to question investment and expansion, which presents a downside risk to our forecasts.

Both Large & Mid-tier Key Players

Chile's mining sector will remain dominated by state-owned copper miner Codelco. Other large global diversified miners, such as Glencore Xstrata and Anglo American, are developing and investing heavily in mine projects in Chile. The rest of Chile's mining sector is made up of mid-sized miners that specialise in the production of a single mineral, such as copper or gold. London-headquartered Antofagasta is a growing copper producer that is expected to continue ramping up production at one of its flagship mines through the end of 2013, allowing it to increase total 2014 production.

We expect the precious metals sectors to diversify as both global gold miners and junior resource companies vie for position. Junior silver miners, such as Genesis Minerals and Laguna Resources, are in the process of developing mineral deposits. Gold and copper production is likely to remain consolidated though, with the largest companies continuing to dominate output and exploration. Much of the country's gold and silver will be produced as by-products in larger copper mines, though various stand-alone projects are being developed.

Partial Table of Contents:

BMI Industry View
- Precious Metals To Contribute To Growth
- Both Large & Mid-tier Key Players
SWOT
- Industry Forecast
- Copper: Modest Growth As Projects Face Delays
- Higher Electricity, Water, & Labour Costs Remain Problematic
- Table: Chile - Major Copper Investment Projects
- Table: Chile - Copper Production & Growth ('000 tonnes, unless stated otherwise)
- Silver: After Declines, Moderate Growth Ahead
- Table: Chile - Key Silver Mine Projects
- Table: Chile - Silver Production
- Gold: Diversification Opportunity, But Risks Remain
- Diversification Opportunities For Wider Economy
- Table: Chile - Major Gold Projects
- Falling Prices Remain Main Risk
- Table: Chile - Gold Production & Growth
Industry Risk Reward Ratings
- Americas - Q1 2014
- Table: Americas - Mining Risk/Reward Ratings
- Local Opposition Remains Potent
- Royalty Threat
- Country Highlights
- Chile: Despite Rating, Potential Vulnerabilities
- Canada: Solid Developed World Destination
- United States: Slow Growing Giant
- Peru: Strong Prospects But Protests Maintain Pressure
- Colombia: Coal Holds Promise
- Brazil: Complexities Abound
- Mexico: Domestic Fundamentals Favourable, For Now
- Argentina: Clear Potential Amid High Risks
- Central America: Frontier Market Opportunities?
Market Overview
- Copper Dominates Mining Industry
- Lower Precious Metals Prices To Impede Development
- Positive Business Environment, Though Uncertainty Ahead
- Risks To Outlook
- Table: Chile - Mining Industry Value & Production Forecasts
Regulatory Development
- Government Policies Favour Investment...
- ...But Some Potential Changes
- Tax Regime Remains Simple
- Corruption Low Compared To Peers
- Table: Chile - Political Overview
- Table: Regional Regulatory Ratings
Commodities Forecast
- Commodity Strategy
- Iron Ore: Prices To Head Lower In 2014
- Steel: Reprieve Unlikely To Last
- Aluminium: Weakness Resuming
- Copper: Continued Weakening
- Lead: Modest Secular Uptrend To Remain Intact
- Nickel: Can't Catch A Break
- Tin: Outperformance To Continue
- Zinc: Likely To Hold Up
- Table: Select Commodities - Performance & BMI Forecasts

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=754494&dt=t

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at www.fastmr.com or call us at 1.800.844.8156.


Author:
Bill Thompson
e-mail
Web: www.fastmr.com
Phone: 18008448156

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