According to Reuter’s Chilean mining companies are possibly going to resume copper projects that stopped due to the decrease in price for copper. A decision will be made after the country’s presidential election in November due political uncertainly that currently puts this plan to a halt.
Chile’s most significant export, chopper as continuously declined in value from record setting highs in 2011 just until October last year, which had caused Chilean miners to stop projects in mining the mineral. As of now, prices have increased 7% and experts predict the value will continue to increase due to the shortage of copper.
Chilean Mining Minister Aurora Williams recently stated, "One perceives more movement from the projects that were, one way or another, delayed by price."
Despite the recent rise in price of copper, other industry sources believe miners must be aware of the political uncertainty the country currently experiences. President Michelle Bachelet attempted to decrease the South American country’ inequality with policies aimed to reform the Chile’s tax and labor code. Although some supporters believe reform is necessary, others believe that her policies have done the opposite by squeezing businesses, which as a result lead to strikes and conflicts in the industry. Earlier this year, an enormous strike occurred at BHP Biliton’s Escondida mine which resulted in a $1 billion loss in production.
A high-ranking source who remained anonymous believes, "[The reforms] have made the sector timid to announce new investments. There's been a loss of confidence."
Currently, pro-business ex-president, Sebastian Panera, has the slight lead above leftist independent Alejandro Guillier in the upcoming November Election.