September 2017: Large mining companies in Chile have experienced a significant deterioration in productivity over the last 15 years, with a fall of 16% and an annual average of 1.2%, according to data from the National Productivity Commission.
The objective was to increase production during high price cycles, to meet the growth in demand, but cost control was inadequate and production was not increased efficiently. This deterioration also resulted from mining lower grade deposits, increased costs for consumables, delays to project approvals, and reductions in mining exploration programs.
The Chilean economy has been affected, and although it still attracts a fifth of global copper exploration expenditure, Peru has proved to be more attractive for investors. A ranking of 104 jurisdictions by the Fraser Institute this year placed Peru in position 28 and relegated Chile to position 39.
Forty-five mining projects could be developed in Peru over the next four years, valued at US$46.4 billion, while Chile expects to implement 47 projects valued at US$64.8 billion over the next nine years. Read more