Chile’s Government drafted a law to enable the Central Bank to buy bonds issued by the country’s treasury in the secondary market. The finance minister said that the Central Bank would be allowed to buy the state-issued debt in “exceptional circumstances” under newly drafted legislation. Chilean law currently prohibits the Central Bank from acquiring debt issued by any state organisation, or from financing public spending through direct or indirect credit.
According to a survey carried out by the Central Bank, almost half of companies covered by the Employment Protection Law will not be able to reinstate their workers. The number of workers already covered by the Employment Protection Act reached 623,501, which is 12,000 more than it was a week ago. Of this total, 531,072 correspond to workers with a permanent contract (85.2%) and 92,429 with an indefinite contract (14.8%).
The Chilean Citrus Committee is forecasting an export volume of 347,000 tons across all categories, which represents a 4% increase compared to 2019. According to a press release, this growth will be driven mainly by mandarins and clementines, with volume slightly lower than last year and lemon volume about the same. Chile has been meeting strong market demand in regard to clementines, with exports through Week 23 depicting a 38% increase compared to 2019.
Sonnedix, a global solar independent power producer, announced the financing for an expected 100 MWp portfolio of approximately 20 solar photovoltaic plants in Chile (the Sonnedix PMGD Portfolio). The Sonnedix PMGD Portfolio consists of solar photovoltaic projects that operate under Chile’s Pequeños Medios de Generación Distribuida (PMGD), a special regime for distributed generation projects. The four initial solar PV plants in the Sonnedix PMGD Portfolio have total capacity of 25 MWp.
Revelo Resources Corp. (Revelo) reports that West Pacific Ventures Corp. (WPV) has signed a Binding Letter of Intent with Fireswirl Technologies Inc. (Fireswirl), by which Fireswirl is proposing to acquire 100% of the outstanding shares of WPV in a Reverse Take Over. WPV currently holds the right to acquire a 100% interest in eight copper focused projects in northern Chile from Revelo. Revelo will then receive new shares of WPV that, in turn, will be exchanged for shares of Fireswirl which is required to have raised a minimum of $4 million.
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%.
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.