Chile's central bank kept its benchmark interest rate steady at 0.5% as the country maintains its efforts to revive the economy following the coronavirus pandemic. A central bank poll of traders last week predicted Chile's rate, its lowest in a decade, would remain unchanged for the next year at least.
Supervisors at Chile’s Escondida mine said they were evaluating a new labor contract proposal from mine operator BHP amidst negotiations to head off a strike at the world’s largest copper deposit, according to the union. The union of supervisors at the sprawling Escondida mine last week rejected BHP’s final offer in contract negotiations, but both parties agreed to extend talks this week. The union said that talks would continue through Oct 16.
Mainstream Renewable Power has placed an order for the 109 MW Ckani Wind Park, to be located in the Antofagasta region, in Chile. The contract includes the supply and installation of 26 V150-4.2 MW wind turbines, as well as an Active Output Management 5000 service agreement for the operation and maintenance of the wind park over the next 20 years.
Enel Chile, through its renewable energy subsidiary Enel Green Power Chile, has started construction on its new 204 MW Domeyko photovoltaic park, located in the Antofagasta Region. The solar plant is due to be completed by July 2021 and will involve a total investment of $164 million.
Copper gained as investors gauged potential threats to supply from Chile while pricing in more U.S. stimulus spending after the election and steady demand from China. Three-month copper on the London Metal Exchange (LME) added 0.3% to $6,712 a tonne after easing by 0.7% on Tuesday and rebounding about 50% since mid-March.
The Government worked hard to shape the guidelines for the pension reform project being discussed in the Senate's working committee. The design on which work is being done would originate from ChileVamos as a counter-proposal to the proposals presented by the opposition towards the end of July. The distribution of the 6% additional contribution is being considered: allocating 2% to individual accounts, 2% to savings and 2% to insurance. The latter would include longevity coverage, with the aim of ensuring the pension of those who survive the most in the mortality tables.
Freehill Mining says metallurgical testing results confirm that high quality of ore at its Yerbas Buenas magnetite project in Chile. The successful testing of the diamond core from the 2019-2020 drilling has been completed as part of a feasibility study on developing the YB6 target within Yerbas Buenas. A concentrate of more than 62% iron concentrate has been produced using a simple and dry process.
The International Monetary Fund (IMF) projected that Chile's Gross Domestic Product (GDP) will decrease 6% this year, according to their October World Economic Outlook report. This projection marks an improvement for the Chilean economy with respect to the same measurement made by the IMF last June, when it pointed out that the national GDP would fall by 7.3%.
Chilean financial analysts are maintaining their forecast of a 5.5% drop in gross domestic product (GDP) for 2020, reported by the Central Bank of Chile. According to the bank's Economic Expectations Survey, analysts continue to expect the economy to recover with 4.5% growth in 2021 and 3% increase in 2022, as forecast in September's survey. Regarding the Monetary Policy Rate, the survey projected it will remain at 0.5% over the next 17 months, then rise to 0.75%.
Mainstream Renewable Power has closed a $280 million “mezzanine” construction finance facility with AMP Capital Infrastructure Debt Fund IV to support a 1300MW build out in Chile. The proceeds will be used to fund a portion of construction equity towards a three-phase 951MW onshore wind and 350MW solar PV construction campaign known as Andes Renovables.