Investing in Latin America
Different regions of the world are known for different resources: Canada for its potash, the Middle East for its oil, and the US for its coal. Like these countries, South America is renowned for its substantial copper reserves.
When it comes to copper investing, copper mining, and copper companies, South America is simply the continent to compare against. Setting the standard in particular is Chile and Peru, where the mineral rich Andes Mountains provide an abundance of economically favorable copper and gold reserves. These countries offer the key criteria essential for a successful venture or investment, including political stability, government support, appropriate infrastructure, a skilled workforce, and most importantly resources. Historically, South America has proven to be an attractive destination for explorations companies because of its ability to deliver on all criteria.
Why Invest in South America?
- Chile is by far the largest producer of mined copper in the world, with mine production greater than 5.3M metric tonnes in 2008
- In 2009, Chile exported $27.5B USD worth of copper, accounting for the country's largest mineral export
- In 2008, Chile provided 36% of the world's copper ore and concentrate, with Peru following second at 15%
- 4 out of the 5 top copper mines (by capacity) in 2009 were located in either Chile or Peru
- Latin America has outperformed world indices in 7 out of the last 10 years
- Peru is the principal destination of Chinese investments, whilst China remains the world's largest importer of copper
- China is Peru's second largest trade partner and in March 2010 signed a free trade agreements between the two countries
- Chile and Peru offer stable government, mining friendly jurisdictions, and ideal infrastructure