The Central Bank of Chile projects that Chile’s GDP will fall between 5.5 and 7.5% this year, with a significant decrease in the second quarter, as inflationary pressures dramatically reduced. The agency predicted that inflation will reach 2.0% this year, from the previous calculation of 3.0%. Meanwhile, the price of copper could average this year $2.50 per pound, compared to $2.15 previously projected. On the other hand, domestic demand could fall 10.4%, with declines in investment of 16% and consumption by 4%.
Sabrina Souviron Gumucio
By 37 votes in favor, 1 against and 3 abstentions, the Senate chamber approved the modifications introduced to the bill that establishes a benefit for independent workers who have been affected by the pandemic. This initiative circumvented its third and final legislative process, with which it was dispatched from Congress and is ready to become law. The initiative increases the subsidy to CH$100,000 ($124.75).
TerraForm Power Inc.’s shares jumped 1.58% to close at $18.67. About 327,552 shares traded hands on 3,305 trades for the day, compared with an average daily volume of n/a shares out of a total float of 226.52 million. With today’s gains, TerraForm Power Inc. now has a market cap of $4.23 billion. The portfolio of facilities controlled by the company includes wind and solar power producing facilities located in the U.S., Canada, the UK, and Chile.
Unionised copper mine workers in Chile asked to be included in a dialogue between companies and the government to address the ongoing pandemic in this sector. The Chilean Mines Federation – which groups the workers at Chile’s principal copper deposits – has stated, “We want to request, as the largest mining organisation in Chile, a three-way dialogue to prevent even more mine workers from becoming infected”. The federation also asked that health and mining officials be more transparent in disclosing information about sanitary inspections at mines.
With the Lithium industry beginning to feel the effects of the pandemic in Chile, SQM and Albemarle state that their operations are unaffected. Albemarle has said that it planned to immediately shut down its potash plant in the north of Chile for 15 business days to comply with restrictions required by authorities. Despite this decision, the company is adamant that this will not affect its lithium production. Meanwhile, SQM has reduced staff but state that dispatches remain stable.
According to a statement given by the Chilean government, “President Sebastian Pinera has decided to extend the state of emergency, which has been introduced in the country since March, for another three months to contain the spread of a second peak of coronavirus”.
According to Patricio Donoso, president of Chile’s contruction union, the Chilean Chamber of Construction (CChC) has come up with an “Employment and Reactivation Plan”. The main goal of this plan is to create 600,000 jobs over a three year period. Two other objectives of this plan are: to satisfy social demands associated with housing, urban equipment and infrastructure; and to address urgent problems, such as the water crisis affecting the country. This plan is to be achieved through a huge investement boost and close collaborative work between public and private sectors.
Chinese supermarkets suspended their Salmon sales, which are imported from Chile, due to at least 50 positive tests of COVID-19 in wholesale markets. Nervousness about the second wave in China resonated in international markets, including the commodities market, where copper took the brunt of the decline with a 2.41% drop, which closed the day at US $2,561 a pound.
The 2019-2020 Chilean grape season ended this year with a 7.6% decrease in export volume. Drought, social unrest and the demand for new varieties are the challenges facing Chilean viticulture. Under the leadership of the Production Promotion Corporation (CORFO), a programme was started through which grape growers in the northern Atacama region work together to make the national sector more competitive.
Sonnedix Power Holdings Ltd has made a loan arrangement to finance around 20 solar photovoltaic (PV) parks totalling an expected 100 MWp in Chile. The independent power producer (IPP) said it has closed senior facilities for USD $87 million with French corporate bank Natixis SA, which acted as the sole lead arranger, hedge provider and administrative agent. The funds will be dedicated to financing a portfolio of solar plants that operate under Chile’s special scheme for distributed generation projects, locally known as PMGD.