Chile's President Says Mining Output To Grow; Touts Investment Climate

• Chilean President Gabriel Boric told a major copper industry conference he expects production at state-run miner Codelco to grow slowly this year and reach 1.7 million metric tons by 2030, and that he sees copper prices rising.
• Notably, driven by renewed interest in commodity assets, copper prices rallied 10% since the start of this year on the London Metal Exchange. Copper prices also hit a record high on the Shanghai Futures Exchange (Shfe) and neared a two-year high of $4.34 per pound last Friday on the Chicago Mercantile Exchange. However, when prices hit $4.50 per pound, it could start to hurt copper demand, analysts believe.
• "The Codelco production will rebound," he said, offering a vote of confidence for the country's top copper producer, whose output last year hit a quarter-century low, at 1.325 million metric tons. Notably, Codelco is aiming to produce between 1.325 million and 1.390 million metric tons of copper this year,a target that at best would see it lightly overtake its 2023 output.
• At a time when global companies have raised concerns about long approval times for new mines and expansions, he said Chile, the world's biggest copper producer, is dedicated to speeding up the permitting process for mining projects.
• He also stressed the need for greater economic distribution of mining industry profits to local communities. Boric also said one of Chile's strong suits was ensuring long-term security for investors.
• Chile’s economy is at a crossroads. Strong policies have successfully brought down high inflation and reduced the large current account deficit that emerged during the pandemic. Increases in social benefits have provided some relief in response to discontent over inequality. However, investment and growth are still tepid and social gaps remain high. Overall Chile is expected to grow by 1.9% in 2024, up from an estimated 0% growth in 2023.

(Sources: Reuters & the International Monetary Fund)