According to the latest report by the Capital Goods Corporation (CBC), a deepening of the decline in public and private investments is projected for this year, but are optimistic for an increase in 2021. In relation to this year, the report indicates that private and public investment will reach $16.89 billion, a figure that represents a decrease of 12% compared to 2019.
Due to the mandatory quarantine lithium projects in Argentina and Chile have halted, while significant investments have already been cancelled. According to English consultancy Roskill, lithium production is expected to drop globally by 110,000 tonnes this year, representing a loss of US $960 million. Production is expected to drop by 35% in Argentina and 20% in Chile.
The Minister of Labour and Social Welfare, María José Zaldívar, reported that the number of dismissal letters for April 2020 reached 238,115. Among the causes with the greatest increase are "company needs" with 66,024 contracts ending in April 2020, and the "expiration of fixed-term contracts" with 83,265 letters of termination in April.
A survey carried out by the Federation of Tourism Companies of Chile (Fedetur) revealed that 70% of firms in the sector have taken advantage of the law to protect employment while 53% applied for the COVID-19 loans. Regarding layoffs, companies said: 53% hadn't dismissed people, 4% had made a complete reduction and 11% had fired half or more of their workers.
Copper Explorer Hot Chili is targeting its first recourse estimate for 2 projects in South America after announcing an oversubscribed $5 million placement and $3.9 million rights issue, with the majority of the funds going towards a drilling restart at the Cortadera project in Chile. Hot Chili is also looking to complete metallurgical testwork and a preliminary economic assessement for Cortadera as well as other projects.