Abstract
Subject Outlook for the mining sector. Significance Already hit by diminishing ore grades and rising costs, Chile's copper industry is retrenching in the face of lower metals prices, announcing production cuts, layoffs and the postponement or review of new investments. As well as affecting companies' earnings and share prices, this has important implications for the country's growth in both the short and medium term. Impacts Due partly to copper prices, Chile's total exports will likely contract this year and, at best, show only a small recovery in 2016. Even if copper prices improve, high production costs will limit Chile's ability to attract new mining investment. With no or very low earnings, Codelco will find it difficult to keep its investment plan on schedule.
Published Version
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