MINING INVESTMENT

PORTFOLIO OF CHILE

Baldo Prokurica
Minister of Mining

March 2019.
 CHILE, STRENGTHS FOR
MINING INVESTMET

INVESTMENT IN MINING

DEVELOPMENT OF ELECTRIC
MOBILITY
1
THE IMPORTANCE OF MINING

• Today, mining is the most important • We are one of the main mining
economic acIvity in Chile and for years it producers worldwide. Our geological
has been its main source of economic virtues, mainly in copper and lithium,
development. It also fosters progress and allows us to envision ourselves as a
employment, bringing dynamism to other mining powerhouse for many years to
related and unrelated economic sectors. come.

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 CHILE IS A STABLE AND OPEN ECONOMY

Trade Agreements with

64 countries.

Macroeconomic Stability.

• Chile is conected with a diversity 85% of the Chile was the first South American
World’s of markets, reaching: country to enter the OECD.
üGDP.
ü93,8% of export markets.
ü65% of World’s populaIon.
Source: Ministerio de Minería e InvestChile. 3
CHILE: FAVOURITE DESTINATION FOR INVESTING AND MINING EXPLORATION

§ Chile is one of the favourite § 2018’s Fraser InsItute Report placed Chile in a historic
desInaIons for mining 6th place worldwide, between the most a_racIve
investment and exploraIon. desInaIons to invest in mining. We maintain a
uncontested lead in LaIn America.

Source: Diario Pulso de La Tercera. 4

 CHILE, STRENGTHS FOR
MINING INVESTMET

INVESTMENT IN MINING

DEVELOPMENT OF ELECTRIC
MOBILITY
5
 COPPER MINING EXPLORATION BUDGET IN CHILE 2018

§ BUDGET IN US$
• We are one of the world’s
favourite countries for
exploraIon investment (6° place
in the world).

• Chile stays as the main copper

Global ExploraIon mining exploraIon desInaIon.
Budget in Copper
2018
US$ 2.073 million • The copper exploraIon budget
in Chile reached US$ 384,7
million in 2018, a 19% of the
world’s total.

Source: COCHILCO en base a S&P Global Market Intelligence.

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PRO-INVESTMENT GOVERNMENT
• We are a pro-investment government, but always within the
framework of respect for current regulaIons. As of April of
this year, the Ministry of Mining created the Sustainable
Development Division to promote and accompany mining
investments so that they can materialize.
• We want to reduce the number of permits requested from
investors since they are bureaucraIc obstacles that delay the
implementaIon of mining projects.
• CreaIon of the Sustainable Project Management Office (GPS)
and the Sustainable Development Division of the Ministry of
Mining.
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 OUR GEOLOGICAL POTENTIAL

• According to data elaborated by The United States Geological Survey (USGS) Chile owns 21,4% of the world's
copper reserves.
§ COPPER WORLD RESERVES

Source: USGS Mineral Commodity Summaries (2018).

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 § WORLD COPPER PRODUCTION
FINE COPPER PRODUCTION AND
WORLD PARTICIPATION

• Chile is the leading producer of

copper, iodine and rhenium in
the world and we are in second
place in molybdenum and
lithium.

• In 2018, Chile produced 28% of

the world's copper.

Source: Cochilco, cifras (p). 9

PORTFOLIO OF MINING INVESTMENTS 2018-2027

• “Investment in Chilean Mining –

2018-2027 Project Pormolio
Report” foresees US$ 65.747
million in investment for the next
10 years.

• Highlighted are 19 private

médium and large mining
projects for an esImate of
US$33.176 million, and 9 Codelco
projects for US$ 22.159 million.

Source: Elaboración Ministerio de Minería en base a Cochilco. No incluye proyecto de liRo Maricunga de Minera Salar Blanco.
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 INVESTMENT PORTFOLIO EVOLUTION
• In 2018 our project investment pormolio grew 1,4%, which accounts for US$ 900 million more than the previous
period.
• This mining project pormolio is the highest in the last three years.

§ NUMBERS IN MILLIONS OF DOLLARS

120.00 112.556
104.300 104.851

100.000

77.290
80.000
66.890
64.856 65.747
60.000
51.063
49.208
43.231
40.000
29.695
18.925 21.941
20.000

Cobre* Oro y plata Hierro y minerales industriales

Source: Cochilco.
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WE ARE AN ATTRACTIVE MARKET FOR SUPPLIERS

• It is esImated that mining purchases for goods and services from the supplier industry reaches
around US $ 20 billion per year in Chile.

Important Pormolio of Mining • It is an opportunity for more suppliers of

equipment and services to parIcipate in the
Investments in Chile. Chilean market.

IncorporaIon of knowledge and

• Contributes to the efficiency, producIvity and
new technologies to the mining safety of workers in the mining industry.
business.

Source: Comisión Nacional de Productividad, Proveedores de la Minería Chilena y FCH. 12

 ENAPAC PROJECT (“ENERGIES AND WATERS FROM THE
WATER RESOURCES AND MINING WASTE PACIFIC”) Atacama Region

• Although we have great geological

potenIal and an important investment
pormolio, we must also consider some
challenges that the sector must face in the
water and waste management field.

• Enapac project will be the largest

desalinaIon plant in LaIn America, to be
installed in the mining region of Atacama
(US $ 500 million investment). VALLE CENTRAL MINING
Libertador Bernardo O´Higgins Region

• Empresa que reprocesa los relaves de la

División El Teniente de Codelco. Caso
Minera Valle Central.

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 MINING PROJECTS

• Projects by region and type

• Among the various exisIng projects in the country, we

highlight 32 medium-sized mining iniIaIves, 25 of those
correspond to exploraIon and 7 are explotaIon
projects. These 7 projects represent an esImated
investment of over US$ 500 million.

p!

Source: Ministerio de Minería e IvestChile. 14

 PROYECTOS DE LA EMPRESA NACIONAL DE MINERÍA (ENAMI)

• ENAMI, the mining promoIon State company, also has

interesIng mining property prospects to develop mining
projects in partnership with investors who can provide
capital for their development.

ENAMI
Lithium Deposits Cobalt Deposits Copper Deposits

AGUILAR & INFIELES Salt Flats EL QUISCO & EL MANZANO LAS PINTADAS
Atacama Region Coquimbo Region Atacama Region
70 km northeast of El Salvador 40 km southeast of Coquimbo 130 km southeast of Copiapó
Tambillo District
CERRO MANCHADO – IMILAC - LAVALLE
Antofagasta Region
160 km east of Antofagasta
Source: Enami 15
CHILE, STRENGTHS FOR MINING
INVESTMET

INVESTMENT IN MINING

DEVELOPMENT OF ELECTRIC
MOBILITY
16
 LITHIUM INDUSTRY IN CHILE
• Chile is the second lithium producer in the world, and has 48% of the world’s reserves.
• In 2017 lithium carbonate equivalent (LCE) producIon in the world reached 234.252 tons, an increase of 15,1%
compared to 2016.
• In 2017 Chile produced 80.417 tons of LCE, 34,3% of the world’s rpoducIon.
• By 2022 lithium producIon will reach 240 thousand tons.
§ LITHIUM RESERVES
§ LITHIUM PRODUCTION

Source: Cochilco.
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 LITHIUM PROJECT PORTFOLIO IN CHILE
• We have a pormolio of projects for US $ 1,807 million. • Codelco began their exploraIon
process in the Maricunga Salt Flat and
is moving forward in the search for a
partner to develop its project.

Project Company ! Amount

Planta La Negra – Fase 3 Albemarle US$ 300 millones
Ampliación Salar del Carmen SQM Salar US$ 180 millones
Producción de Sales Maricunga SIMCO SpA US$ 350 millones

Ampliación Salar del Carmen SQM Salar US$ 450 millones

Amp. Carbonato de LiRo A 180

Maricunga Minera Salar Blanco US$ 527 millones

Source: Elaboración en base a Cochilco y Ministerio de Minería.

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 DISTRIBUTION OF SALT FLATS AND LAGOONS IN CHILE

• In our country there are 63 saline systems divided into

45 salt flats and 18 saline lagoons.

• Of those, the NaIonal Geology and Mining Survey

(Sernageomin) studied the geological potenIal of 18.

• Among the Salt Flats and Lagoons with potenIal to

produce lithium we highlight: Atacama, Tara,
Quisquiro, Aguas Calientes Centro, Pajonales, La Isla,
Aguilar, Parinas, Pedernales and Maricunga.

Source: Sernageomin. 19
 OPPORTUNITY FOR MANUFACTURING INVESTMENT IN THE CHILEAN LITHIUM INDUSTRY

• Contract signed between Corfo and Albemarle in 2016 has a

clause in which 25% of Albemarle's lithium producIon will be
offered at a preferenIal price to those companies, installed in
Chile, willing to add value.

• Corfo made a call to add value to the Lithium of said 25% of

producIon, selecIng three projects that will produce
investments of US$ 754 million in Chile, and thus industrialize
lithium in the north of the country. The companies will produce
about 58,000 tons of materials for ba_ery cathodes.

• The selected projects correspond to the

following companies:

ü Molymet.

ü SAMSUNG SDI Co y POSCO de Corea.

ü Sichuam Fulin Industrial Group.

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Source: Corfo.
 FAVOURABLE EXPECTATIONS FOR COPPER AND LITHIUM

• Our copper and lithium reserves will be highly demanded by the push towards electric vehicles.

• We have a major opportunity to advance into development and to generate more job opportuniIes. It is
key to jump on the value chain.

• An convenIonal car uIlizes 23 kilograms of copper, an electric one consumes 83 kilograms.

• An electric car ba_ery uses between 40 to 50 kilograms of lithium carbonate equivalent (LCE).

BY 2027 IT IS FORCASTED A AN ELECTRIC CAR BATTERY AN ELECTRIC BUS BY 2027 DEMAND FOR COPPER
TOTAL OF 27 MILLION HAS BETWEEN 40 AND 50 CONTAINS AROUND 369 TO PRODUCE ELECTRIC VEHICLES
ELECTRIC VEHICLES KILOGRAMS OF LCE KILOS OF COBRE WILL INCREASE BY 9 TIMES

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Source: Banco Central de Chile, INE, InvestChile e ICA.
OUR MINISTRY VISION

• “Chile will conInue to be a mining country for a

long Ime”, Baldo Prokurica, Minister of Mining.

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Gracias
(Thank you)