Copper prices down 17.7 percent in six days amid fears of recession in Europe.
The price of copper suffered its sixth day of losses on Tuesday, reaching a value of US$3.28 per pound on the London Metal Exchange.
Copper has been registering losses since Sept. 16, and if the trend continues, copper is set to reach its lowest value since 2007. The valuation of copper is a key factor in Chile’s budget, copper being the country’s most valuable export.
Mining, retail and telecom enjoy profitable first semester, salmon profits up 400 percent.
The first semester of 2011 was a good one for companies and business in Chile. At least 80 percent of the companies in the country registered profits from January to June. The information is based on information that 447 companies delivered to the Value and Insurance Superintendency (SVS).
Copper production expected to increase 30 percent as old mines close and new mines open.
Over the next 15 years, Chile’s state-owned copper company Codelco, the world’s leading copper producer, will invest US$37 billion to raise production from 1.76 million tons of refined copper per year to an estimated 2.28 million, according to the company’s 2011 Business and Development Plan (PND).
Codelco, Xstrata, Teck, Luksic and Freeport McMoRan all hope to avoid costly strikes.
Nearly 3,000 workers from Chile’s top copper mining companies will enter into collective bargaining negotiations before the end of the year. It is widely believed that the companies acquiesced to demands of renewed negotiations with unions because of the effects of recent strikes on production levels.
With new mining projects, Chile will produce 120 tons each year.
Gold is currently soaring at a record price of US$1850 per ounce, as investors turn to gold in the face of economic uncertainty in the United States and Europe. And due to new investments, Chile is poised to jump from the sixteenth largest gold producer in the world to the eighth largest.
30 new mining projects will be installed by 2020, thanks to a record government investment.
The government approved on Monday an unprecedented investment of US$67 billion into the country’s already-thriving mining sector. The Chilean Copper Commission (COCHILCO) will spend the next several years refining the details of the gargantuan investment, which is expected to produce 30 new mining projects by the year 2020.
Report also points to lower demands when bad weather shut down production in mid-July.
A two-week strike that ended on Friday is considered the main factor behind a 20 percent drop in demand for electricity from Chile’s main northern energy grids, according to a report by consulting firm Electroconsultores.