The Conversation (0)
With mining representing some 20 percent of the country’s GDP, Minister Golborne offered theses bullish sentiments, “Mining is Chile’s economic engine. Through State policies with a long term vision that promote expansion and development, we want to transform mining in the heart of our country.”
With the Prospectors and Developers Association of Canada’s (PDAC) annual convention aptly dubbed the place “where the world’s mineral industry meets,” the sheer volume and optimism at this event was impressive, even compared to last year’s turnaround. At the conclusion of this year’s edition, attendance is expected to easily surpass last year’s 22,000 participants from 118 countries. In 2009, the economy appeared first on everyone’s mind as the world seemed destined to face the worst recession since the Great Depression of 1929. The convention included approximately 18,000 participants, a marked decline from the 20,000 attendees that were attracted in 2008.
Rescue capsule
One of the highlights of the conference this year might have been the three rescue capsules built to rescue 33 Chilean miners trapped underground last year, which were featured prominently on display during the first part of the week. The 21-inch wide, bullet-shaped capsule called Fenix 1 was standing tall and proud on the ceremonial floor of the convention center. It served as a reminder of last October’s remarkable rescue that captivated the world. This was the first time that any of the three capsules has been on display in North America.
On Monday, a tribute was paid to the team responsible for the rescue, believed to have been the deepest ever at 700 metres, with the presentation of a special achievement award to the leader, Laurence Golborne, Chile’s Minister of Mining.
The potential of a golden future
On Tuesday morning the minister addressed a room filled to standing capacity with more than 200 mining executives, consultants, geoscientists, developers, prospectors and other individuals occupied in drilling, financial, legal, investment, media and supporting fields. Although the presentation was expected to start at 9 AM, the primarily Spanish speaking contingent did not seem to mind a 35 minute delay, and a tremendous respect and gratitude was bestowed upon Minister Golborne in acknowledging his entrance, remarks and departure. With mining representing some 20 percent of the country’s GDP, Minister Golborne offered the bullish sentiments, “Mining is Chile’s economic engine. Through State policies with a long term vision that promote expansion and development, we want to transform mining in the heart of our country.”
Following the opening address, Matías Mori, Executive Vice-president of the Foreign Investment Committee presented a very thorough case to contextualize the Chilean mining industry. The presentation included a history of how Chile became a mining world power and a case for why major companies are investing in Chile.
Although it covers only 0.6 percent of the Earth’s surface and is responsible for 0.3 percent of the global population Chile is known as a leading producer of copper. It is also the world’s main producer of lithium, iodine and nitrates, and it has an important share in the gold, silver and molybdenum markets.
Mr. Mori contended that the “country’s exceptional geological conditions are only part of this success story. A well-established commitment to an open economy, as well as policies that promote investment and new business endeavors are also part of the equation. Despite its prominent position, this country is far from standing still, actively promoting regulation updates and investment in mining. Exploration is the key to the development of mining in the country, and that’s why, after two years, Chile is back at the PDAC Convention.”
Chile’s position as an attractive location for foreign investment is based on four pillars: political and economic stability, a wide network of international trade agreements, the legal security and stability it offers and its high-standard transport and communication services. The foreign direct investment in the country has been running at 6.5 percent of GDP and is demonstrated in the operations of over 5,000 companies from over 60 countries. The Organization for Economic Co-operation and Development (OECD) recently recognized Chile as the first South American member and only the second in Latin America. It now sits as the 31st member of the organization, which plays an integral role creating and changing economic and social policy making internationally.