Energy and Mining Newsletter
May 31st , 2016(Bi-weekly publication) Embassy of the Republic of Korea in Chile ([email protected], +56-2-22284214
Summary : During the second half of May, news in the field of energy have mostly focused on the positive outcomes of price reduction thanks to the increment of NCRE in the energy mix of Chile. As for the mining sector, a shift from the metallic to the non-metallic mining has placed further attention on lithium and its derivates.
Price of Lithium experiences a Boom while placing short-term pressure on main producers ( La Tercera )
Marginal Cost of Energy Fell by 73% in one year due to more presence of NCRE and Early Rain in Chile
(La Tercera)The demand for lithium grew by 47% the first trimester of 2016, a trend that will remain at least for the next two years, according to Benchmark Mineral Intelligence.
The global leader –the American Albermarle– is the controller of Rockwood Lithium with a Chilean market share of 33%. Next is the Chilean company SQM with 25%
and the American FMC Corporation with 12%.
The expectations for the price of this mineral are to the rise; however, this limited to the short run. In the second half of 2017 it is expected a more cautious approach as the entrance of new offer would drive the prices down.
Chile is the second producer worldwide
(34%) following Australia (34%. Experts estimate that the industry of car batteries using lithium as well as its use in electronic components will grow a 10% on average until 2020. Chile is taking steps to capitalize on the benefits of having significant lithium reserve.
Source:
http://www.latercera.com/noticia/negocio s/2016/05/655-681651-9-precio-del-litio- vive-boom-pero-pone-presion-en-el- corto-plazo-a-los-principales.shtml
Chile registered a price reduction of 73% in the marginal costs of energy, which was shown in the average energy price generated by the most expensive power plant injected into the system.
In this context the Central Interconnected system SIC informed that the priced went from US$150 per MWh to US$40 in Santiago. This can be explained mainly by three elements, according to the
Antuko Energy consultant:
First the penetration of NCRE non conventional renewable energy in Chile, particularly solar and wind energy. A second factor is the early rains which registered a significant increment compared to the same period in 2015. And third, the decrease in the marginal cost of fuel, following the reduction in the price of oil and other fossil fuels.
The Government of Chile
is celebrating this cost reduction of energy as it becomes an evidence of fulfillment of goals set in the energy agenda presented in 2014 by President Michelle Bachelet and her Minister of Energy Maximo Pacheco.
The next stage is to make this price reduction sustainable.
Source:
http://www.economiaynegoci os.cl/noticias/noticias.asp?id
=252875 Main Headlines
May 16-31st
-NCRE Power Plants add up complications: they are operating with lower indicators than expected (DF)
https://www.df.cl/noticias/em presas/energia/centrales-ernc- suman-complicaciones- operan-menos-de-lo-que- pronostican/2016-05- 26/203331.html
-Infrastructure Fund would become a reality in 2017 (DF)
https://www.df.cl/noticias/em presas/infraestructura- inmobiliaria/gobierno-fondo- de-infraestructura-seria-ley- en-2017/2016-05-
17/211056.html
- Dams in Chile are currently at 35% of their Capacity (La Tercera) http://www.latercera.com/noti cia/tendencias/2016/05/659- 680785-9-embalses-en-el- pais-estan-al-35-de-su- capacidad-segun-direccion- general-de-aguas.shtml l - Chile loses for a 5th. consecutive year in the World Ranking of Competitiveness (La Tercera)
http://www.latercera.com/noti cia/negocios/2016/05/655- 682907-9-chile-retrocede-por- quinto-ano-consecutivo-en- ranking-de-competitividad- mundial.shtml
