Fair
Minexpo 2016
This is Chile at Minexpo 2016.
Visit us in the North Hall #223, Convention Center, Las Vegas.
The premier exposition of mining parts, equipment and services in the world
Between September 26 and 28, suppliers of mining parts, equipment and services from different countries will be converging on Las Vegas in the United States, to take part in the largest exhibition of its type in the world.
Over 38,000 mining professionals attended the last version of MINExpo in 2012, which had a total floor space measuring 80,000 m2.
Chile will have a pavilion at this year’s event. The representatives of 8 Chilean companies will be there to showcase the latest goods and services for mining exploration and development in Chile, a country known internationally for its great mineral wealth.
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Chile, a reliable mining supplier
In recent decades, Chile has consolidated its position as a world leader in copper production
In 1990, it accounted for 17.7% of global production, while in 2014 it produced a total of 5.74 million metric tonnes of copper, equal to 31% of the world total, according to figures from the Chilean Mining Council.
Copper has therefore become Chile’s principal export. In fact, in 2015 it represented 48.61% of Chile’s total shipments, with US$30.3 billion, according to Chile’s Central Bank.
Although it is a non-renewable resource, the future looks good for Chile’s industry and its global position, because the principal mining companies, in both the public and private sectors, have long-term plans to increase production.
Seen in retrospect, the boom experienced by copper from the 1990s onwards is explained by the unprecedented dynamism achieved by Chilean mining and the country’s climate of economic openness that enabled foreign investment to play such an important role in the growth of the sector.
Chile’s leadership position can also be linked to the availability of highly trained and qualified human resources, adequate road and communications infrastructure, responsible and expansionary economic policy, a climate of democratic stability and an adequate institutional and legal framework.
Suppliers have been key to achieving success in mining production, as they enable resources to be optimized in the exploration and development processes of both Chilean mining companies and foreign companies that have set up in Chile.
Chile’s mining supply sector provides capital goods like trucks and shovels, supplies like reagents, sulfuric acid, tires, grinding balls and steel products and services like engineering, consulting, assembly and construction. There are also general and maintenance services.
The demands of the mining industry have led Chilean suppliers to become leaders in certain areas of products and services, such as hammer drills, portable borehole drills, heavy metal structure assembly and manufacturing, auxiliary blast equipment, and rock strengthening and stabilization elements, amongst others.
The broad range of products and services they have developed in accordance with high quality standards and the experience they have gained over the years have enabled Chilean mining suppliers to develop the capacity to export their goods and services to a range of markets, with a competitive price-quality ratio.
As a result, in 2014, Chilean companies from this sector exported products and/or services totaling US$537 million, according to the First Export Suppliers Report for the Mining Sector 2010-2014, developed by Fundación Chile in association with ProChile and Achilles. This report also revealed that 87% of the industry’s shipments go to Latin America, while 5.5% go to North America and 3.6% to Asia.
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Chilean exports worldwide
In 2015, Chilean exports totaled US$62.2 billion. The United States was the second largest destination market with US$8.2 billion, according to figures from Chile’s Central Bank:
Market 2014 2015 % variation
’15/’14% share ’15 China 18,196.49 16,339.88 -10.2% 26.3% U.S.A. 9,237.66 8,154.52 -11.7% 13.1% Japan 7,375.01 5,307.61 -28.0% 8.5% South Korea 4,653.51 4,046.54 -13.0% 6.5% Brazil 4,048.73 3,075.72 -24.0% 4.9% India 2,569.59 1,941.43 -24.4% 3.1% Netherlands 2,241.12 1,634.72 -27.1% 2.6% Peru 1,799.08 1,594.43 -11.4% 2.6% Taiwan 1,794.76 1,450.57 -19.2% 2.3% Mexico 1,301.97 1,339.23 2.9% 2.2% Spain 1,397.05 1,312.88 -6.0% 2.1% Canada 1,196.41 1,242.88 3.9% 2.0% Bolivia 1,560.37 1,187.27 -23.9% 1.9% Italy 1,737.55 1,090.69 -37.2% 1.8% Argentina 961.56 805.66 -16.2% 1.3% Germany 938.37 797.39 -15.0% 1.3% France 1,191.72 790.35 -33.7% 1.3% Colombia 899.70 784.41 -12.8% 1.3% Belgium 1,079.65 731.25 -32.3% 1.2% UK 707.61 667.75 -5.6% 1.1% World total 74,923.88 74,923.88 -16.9% 100.0% Source: Direcon-ProChile with figures from Chile’s Central Bank.
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Trade relations between Chile and the United States
Chile has 26 trade agreements in place with 64 markets, which together represent 64.1% of the world’s population and 86.3% of global GDP.
One of the most important is the Free Trade Agreement (FTA) with the United States, which has been in force since January 1, 2004. Its signing marked a landmark in Chilean history, as it meant consolidating and deepening its strategy of being an open, competitive economy based on the dynamism of exports.
A comprehensive and balanced agreement was reached, which went beyond the commitments adopted by both countries in the framework of the World Trade Organization (WTO) and included all aspects of bilateral economic relations, that is to say trade in goods, services and investments, trade defense, institutional affairs, technical standards and matters related to the new economy, such as e-commerce and modern treatment of environmental and labor matters.
On January 1, 2015, the goods of both countries completed their schedule of tariff reductions and since that date 100% of bilateral trade has been completely duty free.
The signing of this FTA therefore marked an important step in Chile’s strategy of international insertion, by opening the doors to the world’s biggest economy and generating new opportunities for expanding trade and investment in the country.
Exports and imports
According to figures from Chile’s Central Bank, 27% of Chile’s exports to the United States in 2015 related to the mining industry, with sums totaling around US$2.2 billion. 86% of this total came from copper shipments. The remaining 73% corresponded to goods other than copper, such as farm produce, seafood, manufactured goods, forestry goods and wine.
Meanwhile Chilean imports from the United States in 2015 reached US$11.7 billion, according to figures from Chile’s Central Bank. The main products acquired from the North American nation were oil by-products (29% share), mechanical machinery, equipment and parts (17%) and transportation equipment (10%).
Investments
The United States is the country that invests most in Chile. According to data from InvestChile, during the period 1974 to 2014, cumulative investment from the United States reached US$29 billion, representing 26% of total foreign investment in Chile. US investment has mainly focused on the mining and quarry industry (19%), the chemical, rubber and plastics industry (17%), trade (17%), electricity, gas and water (12%) and communications (9%).
Meanwhile, as of December 2015, the United States was the fifth biggest recipient of Chilean direct investment, with a total of US$8.5 billion, or 8% of all the direct foreign investment made by Chilean companies. The service sector is the main destination for Chilean investment in the US, representing 62.3% of the total amount. Next comes mining (26.3%) and then industry (11.3%).
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Chile’s Activities at Minexpo 2016
Date and time Venue Event September 26, 2016
(12 p.m.)North Hall #223,
Convention CenterInauguration of Chile’s Pavilion September 26, 2016
(6 p.m.)Hard Rock Café Las Vegas Strip
(3771, South Las Vegas Boulevard)Networking organized by Kallman Worldwide -
Institutions in Chile’s Pavilion
Take a look at the catalogue featuring the Institutions that will be in Chile’s pavilion:
Contact
Rodrigo Mladinic | Trade Commissioner of Chile in Los Angeles
6100 Wilshire Blvd., Ste. 1450; Los Angeles, CA 90048; USA
+1-323-932-7200
@ProChile_US
rmladinic@prochile.gob.cl
