The Ministry of Finance announced new tax measures, as part of initiatives to support SMEs and companies hit by economic crisis caused by the pandemic. One of these measures includes the extension of the suspension of Provisional Monthly Payments (PPM) during the months of July, August and September, for all companies that register a decline in gross income equal to or greater than 30% for the January-May 2020 period, compared to the same period last year.
The Chilean ministry of national assets has awarded land concessions for the development of renewable energy projects to 8 power producers, expecting around 2,614 MW of new capacity. The 8 power producers are: Enel Green Power Chile, Caldera Solar, Copiapo Energia Solar, Solarcentury Chile, Sonnedix Chile Holding, Solarpack Chile Limitada, Engie Energia Chile and EDF En Chile Holding. Based on the bids, the new projects will involve investments totalling US $2.536 billion.
Spanish infrastructure builder Elecnor SA has confirmed its involvement in the construction of the 185-MW Cerro Tigre wind farm project in Chile. According the company, it secured the contract to deliver the full balance-of-plant (BOP) package for the project, including turbine installation and the construction of substations, transmission lines and other infrastructure. The project is promoted by Mainstream Renewable Power and is part of the Ireland-based developer’s 571-MW Condor wind and solar portfolio.
Tesoro Resources has started infill and extensional drilling at its flagship El Zorro gold project in Chile, with two rigs onsite at the high-grade Ternera prospect. Drilling is initially targeting Ternera and following up on previous intersections that include numerous intervals exceeding 100 grams per metre of gold.
Global miner BHP has announced that it would begin to scale down activity at its small Cerro Colorado copper mine in Chile amidst the pandemic. BHP said the new plan would mean a gradual reduction in staff that would begin this year and span the coming four months. The company said it would continue to “look for medium and long-term alternatives that would allow it to extend its mining operation beyond 2023.”
California-based energy infrastructure company, Sempra Energy, has completed its exit from South America with the sale of assets in Chile and Peru. The company raised roughly $5.82 billion in combined cash proceeds from its divestment in the two countries. The Chilean sale was completed last week and generated around $2.23 billion.
Latam Airlines and some of its subsidiaries formalised before a U.S. court the first tranche of the proposed DIP (Debtor in Possession) financing, as part of the reorganisation process that was prompted by the negative effects of the pandemic in the commercial aviation industry. It corresponds to US$900 million that shareholders Qatar Airways and the Cueto and Amaro families committed when they announced the request for Chapter 11.
Revelo Resources Corp. wholly-owns four gold-silver projects covering more than 38,000 hectares of ground along northern Chile’s highly prospective and productive mineral belts. Revelo intends to focus its activities and exploration funds, subject to Revelo raising new capital, on a rolling program of exploration on these projects in order to advance towards potential discovery. Exploration on the projects has included proof-of-concept drilling at Victoria Sur, Las Pampas and Loro which has shown clear evidence for the styles of mineralisation sought.
According to the president of the National Confederation of Small Industry and Crafts of Chile (Conupia), Roberto Rojas, a high percentage of SMEs could be forced to go into bankruptcy due to the economic effects caused by the pandemic. Rojas projects that “up to 150,000 or 180,000 SMEs could disappear”. He predicts that commerce, tourism, gastronomy and live entertainment will be the most affected sectors.
LATAM has suspended ticket sales on 23 routes across its network, including several domestic routes within Chile and international routes from Brazil, Chile and Peru. This is part of the carrier’s restructuring process the airline submitted as part of Chapter the 11 bankruptcy protection that seeks to make the carrier more efficient in what is likely to be a smaller post-COVID-19 market.