The pandemic has not been brought under control in Latin America and the Caribbean, which lead to the region's GDP decreasing by a historic 9.1% in 2020 and raising the unemployment rate to 13.5%, reported by ECLAC. As for Chile, the United Nations agency estimated a -7.9% decline for the local economy, compared to the 4% estimated in April. This record is more pessimistic than the Central Bank (-7.5%) and the IMF (-7.5%).
Kinross Gold Corp. reported a 25% increase from its 2019 year-end mineral reserve estimates after releasing a pre-feasibility study for its Lobo-Marte project in Chile. The study estimate includes total life of mine production of approximately 4.5 million gold ounces, with an average all-in sustaining cost of sales of $745 per gold ounce within a 15-year mine life.
Chile's Antofagasta and unionised workers at its Zaldívar mine entered into mediation with the government in a last-ditch effort to stave off a strike amid a coronavirus outbreak in the South American nation. Workers at the mine voted in favor of a walk-off late last week after rejecting a new contract offer. The company has agreed to continue to dialogue. A period of government mediation will run through July 22, according to the union.
Chile's central bank kept its benchmark interest rate steady at 0.5% as per market expectations as the country continues to suffer the economic effects of the pandemic. Chile has kept its interest rate steady since successive cuts up until late March, when it warned of a "severe" economic reduction.
Chilean lawmakers in the country's lower house approved a bill to allow citizens to withdraw up to 10% from private pension funds. The vote was 95-36, with 22 abstentions. The bill was backed by 13 members of Piñera's ruling coalition.