Mining Investment in Latin America - The Implications
Elon Musk has a very clear picture of what he thinks the future holds, whether it be a citadel on Mars, a half-hour flight from New York to Tokyo, or public transport via the Hyperloop. But when he arrived in Chile in late December 2017, rumours quickly began circulating that he was there to strike a new Lithium-supply deal for Tesla. On the back of an already-huge investment, he still faces well-publicized challenges in getting his Model 3 into mass production.
However, regarding broader, more general mining investment, what are the challenges faced by miners in Latin America and what does the future hold?
One can pull up a plethora of news articles from almost any year in recent history and the headlines will generally follow the trend that Latin America ‘is the primary destination for mining investment’, or that it ‘continues to grow as a destination for mining investment’ and that even in a downturn ‘the region remains a top attraction for investment dollars’.
This in a region which is widely reputed to produce:
- half the world’s silver
- almost half the world’s copper
- roughly a quarter of the world’s molybdenum
- a similar amount of the world’s zinc
- important contributions to the global gold and lithium market
One reason for the positivity is that still only a small percentage of its cumulative mineral reserve is being exploited. However, whilst both opportunity and challenges exist across the region, for the sake of column inches this article will focus on Peru, Chile and Argentina.
View the full report from Willis Towers Watson in the attached PDF below.