Chile Has $40B in Delayed Mining Projects; Copper 3-Mo Jumps

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Chile has delayed mining projects coming out of its ears and “Chile’s incoming center-left government must find solutions for the roughly $40 billion in mining projects which have been put on ice or delayed in the world’s top copper producer, the SONAMI mining association urged on Wednesday,” reports Reuters.

“President-elect Michelle Bachelet will take the reins of the country, a mining powerhouse, on March 11 with a strong mandate for reform.”

“Awaiting her are a number of mining and energy projects which have been delayed due to unclear regulations and increasing opposition from local communities and environmental groups.”

“Other projects and expansions have been put under revision or pushed back as metal prices slip and production costs increase.”

“Despite the $40 billion in delayed or blocked investments, SONAMI’s overall forecast for $100 billion investment in the Chilean mining industry is still intact, said Alberto Salas, president of the organization.”

In metal price news for copper…

On Wednesday, January 15, the 3-month price of copper experienced the biggest change, rising 0.6 percent on the LME to $7,319 per metric ton. Also on the LME, the cash price of primary copper gained 0.5 percent to finish at $7,342 per metric ton.

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The Japanese copper cash price declined 0.5 percent. Following a couple days of improvement, the price of US copper producer grade 122 weakened by 0.2 percent. Weakening prices followed two days of improvement as the price of US copper producer grade 110 dropped 0.2 percent. After improving for two days, the price of US copper producer grade 102 declined 0.2 percent.

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Chinese copper closed mixed yesterday. The cash price of Chinese copper fell 0.5 percent. Chinese copper bar closed 0.4 percent lower. The price of Chinese copper wire held steady. For the fifth consecutive day, the price of Chinese bright copper scrap held flat.