The mining consulting firm Vantaz Group and the Center for Copper and Mining Studies (CESCO) have launched the 5th version of the "Mining Signals" study to analyze the expectations of different actors in the mining sector in Chile and Peru regarding the country and the industry, in key areas such as prices, demand, production, employment and investment.
"This international study is very relevant for Vantaz, since it gathers the perception that the industry and people from other sectors have regarding the evolution of the mining ecosystem. In addition to the traditional study, last year we added a pilot experience in Australia for the first time, which has been very interesting to broaden the perspectives in the different mining markets", says Daniela Desormeaux, Director of Studies of Vantaz Group and Director of CESCO.
Through the four previous versions, the analysis has been able to capture how the pandemic, the constitutional process, the Royalty discussion and the whole political context has influenced the outlook for the mining industry.
Regarding different findings, Daniela Desormeaux, highlights the similar trends among the three countries analyzed. "In general, Chile, Peru and Australia have very favorable long-term prospects for the main minerals such as copper. Also, there is optimism in relation to the fundamentals in demand, which makes us think that it will continue to be attractive to invest in this industry. The sector will continue to grow, because there are more needs for minerals in the future".
On the other hand, the surveys have shown that perceptions of the environment vary due to differences in local conditions. In this sense, in the Peruvian market, there is pessimism with regard to the political-social environment; in the case of Chile, there is greater concern with the regulatory environment, and this makes sense because "we were in the middle of discussing the mining royalty and tax reforms, so there was greater uncertainty with regard to the regulatory issue, which could interfere in one way or another in the short and medium term," explains the director of studies at Vantaz.
Regarding the fifth version of the study, which will begin its field work next April, Desormeaux outlines a trend that could be reflected: "If you look at the long term, the fundamentals have not changed compared to a year ago. What is true is that today we are in a scenario of great pressure on mining costs. Therefore, if we have a context of lower production and higher costs, we will also see lower margins".
The launch of the study will be announced on April 17 during "Cesco Week". The results will be available in June through the Vantaz Group and Cesco websites.
