Embassy of Korea in Chile – Ms. Kleinsy Bonilla, Advisor, Energy, Mining and Infrastructure Alcántara 74, las Condes, Santiago – (+56-2) 2228-4214, [email protected]
ENERGY, MINING &
INFRASTRUCTURE
N E W S R E P O R T
The Ministry of Public Works of Chile –MOP- announced an ambitious plan to call for a public bid in 2017. This process aims to award project for USD$ 3,500 million. The Government of Chile proposes that by inviting private companies to expand the public infrastructure in the country, the living conditions of Chileans would be increased. At the same time, improvement and the expansion of infrastructure is regarded as positive for the national productivity.
Infrastructure projects include: roads, airports, ports, dams, health facilities and other public services.
The creation of a Fund for Public Infrastructure is being discussed in the Senate.
Source: http://www.infraestructurapublica.cl/construir-infraestructura-para-el-desarrollo/
Chilean Goal: Building Infrastructure for Development
Cost of Energy in Chile falls by 33% and reaches its lowest level in 10 years
The high cost of energy has been considered a big obstacle for the economic activity in Chile. However, this is progressively changing as the cost of energy registered a 33% drop during 2016. This drop brought energy prices to its lowest level in 10 years.
During 2011 and 2012 the energy cost reached USD$200 per MWh annual average price; most likely due to the prevalence of intensive use of diesel. This contrasts with the USD$61 MWh observed in the Central Interconnected System in 2016. The causes behind such price reduction include: irruption of non conventional renewable energies and reduction in the international prices of fossil fuels.
Source: http://www.latercera.com/noticia/costo-la-energia-cae-33-2016-llega-menor-nivel-diez- anos/
After a year of negotiations and a rough debate, the Government of Chile through the Chilean Economic Development Agency –CORFO- approved an increment of lithium exploitation en favor of the American company Rockwood. Another Chilean institution involved in the process was the Chilean Agency for Nuclear Energy – CChEN extended the duration of Rockwood´s exploitation rights, as well as the production quota awarded to the company. With this new agreement Rockwood will be in capacity to produce 80,000 metric tons of lithium per year during the next 27 years.
Source: http://www.pulso.cl/empresas-mercados/rockwood-recibe-luz-verde- para-elevar-explotacion-de-litio-y-corfo-se-blinda-con-acuerdo/
Rockwood receives green light to increase lithium exploitation
2017, J an uar y 1s t – 15t h
Embassy of Korea in Chile, 2017 Sources: Various authors, newspapers: El Mercurio, La Tercera,
Diario Financiero, Pulso. January 01-15, 2017
The design of the mega project Chacao Bridge in Chiloe, southern part of Chile became subject of analysis due to an earthquake suffered by Chiloe. It is well known that the Chilean territory is prone to such natural phenomena.
Recent reports indicate that the design of the project included this factor which dissipates concerns that earthquakes of different scales could damage the structures of the bridge
Different stakeholders, community members and government authorities monitor closely the resistance of the Chacao Bridge to telluric shakes.
Source: http://www.latercera.com/noticia/estudios-relacionados-al-puente-chacao- incluyeron-falla-geologica-ancud-canal/
Studies remark that the Chacao Bridge design foresaw a geological fault line
Minister of Energy of Chile Mr. Andrés Rebolledo acknowledged the concern of various companies in the generation sector of renewable energies. These concerns regard the delay in the Cardones-Polpaico main transmission line project. Financial risk of these generation companies could reach USD$10 million. It is expected that the referred transmission line will be completed and start operations on January 16th, 2018.
Source: http://www.pulso.cl/empresas-mercados/renovables-piden-habilitar-por-tramos-linea- de-interconexion/
Interconnection line critical for the transmission
of renewable energy Possible further demand might bring the price of lithium to a higher level in 2017
Since 2010 the price of lithium has grown by five-folds.
Currently, it reaches US$20 thousands per ton. A boom in the production of lithium batteries as put pressure on demand which at the same time has brought prices to higher levels.
Chile is a major player worldwide, particularly as the country is located at the core of the “lithium triangle” along with Argentina and Bolivia.
Source: https://www.df.cl/noticias/mercados/mercados-en-accion/el-litio- seguira-sin-techo-este-2017-la-apuesta-es-por-mas-demanda-y/2017-01- 04/201428.html
