- This is mainly due to the rise in the price of copper and external demand, as highlighted by the sixth “Mining Signals” index, prepared by Vantaz Group and CESCO.
- However, challenges still persist in production and investment, issues that should be addressed from a global perspective to ensure sustainable growth.
Vantaz Group and CESCO announced this morning the results of the 6th Mining Signals Index. At the event, which brought together different actors from the mining ecosystem, an optimistic outlook for the Chilean mining industry was highlighted.
Daniela Desormeaux, Director of Studies at Vantaz Group and Constanza Araya, Coordinator of Studies at CESCO, presented the main indices of the study; based on a sample of more than three hundred industry representatives and developed between April and May of this year.
It should be noted that this is the sixth sample that has been carried out, and that its objective is to understand the perception that the mining ecosystem has about the dimensions that influence the development and growth of the sector.
In general, in this 2024 version, an upward trend in expectations for the Chilean mining industry stands out, due to the positive outlook for the price of copper and its external demand. However, challenges persist in terms of production and investment, central aspects of the sector that must be addressed with urgency and a sustainable perspective.
In this sense, the current optimism is reflected in the general results of this index, which this year increased 17 points compared to last year’s sample; going from 55 in 2023 to 72 in 2024.
In that sense, a value of 50 in the index corresponds to neutrality, therefore, indices above this value indicate optimism, and below this value, pessimism. With respect to the index associated with the environment, it continues to be in the realm of pessimism, going from a value of 36 in 2023 to 39 this year.
With these results in sight, Mauricio Ortiz, CFO and VP of Finance of Antofagasta Minerals, who participated in the results analysis conversation with Juan Cariamo, Partner and Co-CEO of Vantaz Group, stated that “it is always good to see We are optimistic, it is a positive way to face the challenges we have as an industry, which are not few. There is a valuable point here, if we compare the figures from 2021 to 2024 the conversations about the use of copper have matured, we see a virtuous circle; Today the investment foundation is transition and energy security.”
Along these lines, Daniela Desormeaux, Director of Studies at Vantaz Group, stated, “we see an improvement in the outlook, mainly associated with the external fundamentals of the copper market, that is, demand and prices. However, a level of pessimism persists regarding the environment, a situation that would improve slightly in the medium term. Despite this, expectations regarding production and investment are stagnant, with the sector’s main concern being to maintain competitiveness.”
For his part, Jorge Cantallopts, executive director of CESCO, highlighted that this index “year after year becomes more relevant and robust, which allows us to improve the perception of the industry and prepare for various scenarios.” In relation to more positive results than in previous versions, Cantallops pointed out that “it should undoubtedly generate a better business and development environment. However, it is still worrying that the perception regarding the ability to carry out projects does not follow the same trend. We hope that the current policies that are being implemented on permit issues, the lithium strategy and the better market conditions will also allow these indicators to improve,” he commented.
It is important to note that, in this sixth edition, for the first time, perceptions regarding the development of new projects were asked about. In this sense, the results indicate high expectations, with a total index of 70, which suggests that there could be a strong boost in future investment and production. However, the main concerns focus on the economic and social situation, as well as the regulatory and environmental environment.
On the other hand, investment in mining also shows positive signs, with an index of 72 in the medium term, reflecting confidence in the sustainability and growth of the sector.
In relation to minerals in particular, 57% consider that lithium production will increase in the next two years, while 40% consider that copper production will also increase in the same period of time.
Finally, and with respect to demand, 80% believe that copper demand will increase in two years and 63% believe that lithium demand will grow in the same period.
Check the complete 2024 index here:
