Davenport Laroche metals Report march 2015 Latin America’s Mining Industry Latin American continues to be a significant force in the global mining industry, for investment, exploration and development. The sector thrives due to its highly prospective geology, reduced cost profile and an attractive environment. This month’s metals feature will expand on this and highlight both the potential of the sector in addition to the challenges faced by the industry. Latin America covers one-sixth of the Earth and produces exceedingly high levels of the world’s three most in demand metals – iron ore, copper and gold. Of the regions in Latin America, Brazil is the most prominent mining nation, thanks to its vast iron-ore mines. Brazil is followed by Chile, which boasts exceptionally prominent copper mines, making it the second most significant producer of mined metals in the region during 2013. Although mining activity across the world, including in Latin America’s industry has shown signs of decline since 2012, there are hints of promise in the sector with the search for gold continuing to dominate drilling reports between 2012 and 2013. The highest level of this drilling was said to be centred around the Pacific Rim. Since the Victorian era and continued into the present day, developments in mining have sparked progression in infrastructure and for the wider economies of many nations. In Latin America, the building of the railway through the Andes was one significant development in infrastructure to benefit as a result of mining. Despite the railway, the region continues to face some challenges, ranging from socioenvironmental issues, electricity supply, water and additional transport routes. Despite such challenges, Latin American mining efforts produce extraordinary amounts of metal, generating 45% of the world’s copper, 50% of silver, 26% of molybdenum, 21% zinc and 20% gold. Latin America has been a major beneficiary of the global appetite for gold, particularly witnessed in the 2000s. As a result, major discoveries have been made within the region, with Peru, Brazil, and Chile cited as the top three producers. The prominence of these nations has been reflected by the increase in output levels, which since 2001, have collectively risen by 25%. In addition to the significant rise in recent years, there are numerous projects in the pipeline set to enhance output further. A total of US$8.9 billion has been raised since the end of August 2011 for the development of mines in Latin America and four countries – Mexico, Panama, Brazil and Peru – accounting for 85% of this total. The majority of this spend is said to be directed towards copper and gold. Although there are several hurdles that Latin American is set to overcome, particularly regarding infrastructure and transportation, the mining industry is crucial to the local economy. With significant output levels and further projects on the horizon, this can help the region cement its position as one of the world’s leading mining destinations. To find out more, visit: http://bit.ly/1DI2yUg Address: 1501, Millennium City 5, 418 Kwun Tong Road, Kwun Tong, Kowloon. Phone Number: 2892-7665. Fax Number: 37538919. Email: info@davenportlaroche.com