Energy and Mining Newsletter
April 30th , 2016(Bi-weekly publication) Embassy of the Republic of Korea in Chile ([email protected], +56-2-22284214
Summary : Energy and mining-related news in Chile during the second half of April, 2106 have been dominated by analysis of economic and financial impact of growth for the current year. The opening of Expomin –the biggest mine expo fair, has triggered the debate involving labor trends in the area, as well as perspective for the big, medium and small mining in Chile
The OECD calls for improvements in the regulatory framework to promote productivity in Chile (LT)
Controversy between the Government of Chile and the lithium exploiting companies rekindled (LT,DF)
The Organization for Economic Cooperation and Development OECD presented a report containing
recommendations for Chile to improve its regulatory framework, and consequently promote productivity.
Mr. Angel Gurria, General Secretary of OECD, delivered the report to the hands of
President Michelle Bachelet, in company of the Minister of Foreign Affairs, Mr. Heraldo Muñoz and Minister of Finance, Mr. Rodrigo Valdez.
Among the main
recommendations are: the creation of an agency in charge of supervising the relevant regulatory framework, as well as simplifying procedures.
The elimination of red tape and excessive paper work is also an important priority. One of the principal focus of this report involves the regulation of SMEs, the authorizations for construction, change in the use of land, and digital government (e’Government).
If Chile intends to remain competitive in the LAC region, these suggestions should be followed. Source:
http://www.economiaynegocios.cl/noti cias/noticias.asp?id=246401
Chile is one among the countries with higher reserves of lithium in the world. In this context its government signed over 30 years ago two agreements to exploit such resource with two private companies: the Chilean SQM and the American Rockwood.
The conditions of such exploitation agreements are dissimilar because
while SQM has
preferential tax exemption
scheme, Rockwook is required to pay higher taxes and royalties to the State. Both contracts have being criticized as they do not share the benefits of lithium exploitation with the local communities, neither enable the production of value added articles, transferring technology and increasing capacities into Chile In addition, the exploitation of Salar Atacama represents a
conflict between CORFO (the public agency owner of the lithium deposit) and SQM. This later company has opposed to CORFO awarding further exploitation rights to its competition: Rockwood, which has lower permits for lithium exploitation.
CORFO´s Vicepresident Eduardo Buitan has declared:
“SQM has become an inconvenient partner”
Source:
http://www.economiaynegocios.cl/no ticias/noticias.asp?id=245524 Main Headlines
April 16-30th
-Changes in renewable energy sector of Chile modify the presence of key companies, such as SunEdison and Abengoa (EL)
- Controversy between the Government of Chile and the lithium exploitation awarded companies –SQM and Rockwood rekindled (LT, DF)
-Chile aims to follow the Australian model for infrastructure development (EM)
-In spite of rise in unemployment, requirement for specialist in NCRE are projected to rise (DF).
- OECD calls for improvements in the regulatory to promote productivity in Chile (DF).
This publication is based on articles and notes included in three daily newspapers of extensive circulation in Chile: El Mercurio (EM), la Tercera (LT) and Diario Fianciero (DF). Main covered topics are related to economy, energy and mining sector.
Links to the online version of the sources are included
