Boston, MA -- (SBWIRE) -- 10/04/2013 -- We forecast Chile's mining sector will grow through 2017, albeit at a more moderate pace than in previous years. Major miners will continue to develop several large projects, though rising costs and falling prices will lead to more conservative expansion and acquisition plans. Our forecast is for Chile's mining sector to expand by 1.5% on average per annum through 2017.

The Chilean mining sector will continue to rely on copper production for the foreseeable future. The pipeline of copper projects and the country's global dominance in copper production will ensure the country's dominance despite falling ore grades and more modest production growth. With future supply looking relatively robust and Chinese fixed asset investment slowing, we forecast falling demand growth and hence lower prices. Indeed, we see prices averaging US$6,800/tonne in 2014, which will heavily affect the Chilean economy. Despite weakness in 2013, copper prices remain elevated by historical standards, encouraging production for the time being.

View Full Report Details and Table of Contents

Precious Metals Key To Growth

Chile's mining sector will grow in part thanks to investment in gold mining, diversifying the sector away from copper. We forecast Chile's gold output will grow by an annual average rate of 3.1%, reaching 1.82moz (mn ounces) by 2017. Gold's share of Chile's mining exports in US dollar terms rose from 1.4% in 2007 to 3.5% in 2012. Though we recently downgraded our gold price forecasts as prices continue to weaken, various projects remain in the development stage. Major companies, including Barrick Gold and Goldcorp, are developing large gold projects, although rising costs have seen several mines delayed.

Barrick Gold, Codelco and Antofagasta have all reported rising labour, energy and water costs forcing the companies to increase pre-production expenditure estimates on mine projects. These factors, in addition to falling prices, are leading some firms to question investment and expansion, which presents a downside risk to our forecasts.

Both Large & Mid-tier Key Players

Chile's mining sector will remain dominated by state-owned copper miner Codelco. That said, other large global diversified miners, such as Xstrata and Anglo American, are developing and investing heavily in mine projects in Chile. The rest of Chile's mining sector is made up of mid-sized miners that specialise in the production of a single mineral, such as copper or gold. London headquartered Antofagasta is a growing copper producer that is expected to continue ramping up production at one of its flagship mines through the end of 2013.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Materials research reports at Fast Market Research

You may also be interested in these related reports:

- Global Mining Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Mining Industry
- Global Mining Survey 2013-2014 - Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry
- China Mining Report Q4 2013
- South Africa Mining Report Q4 2013
- Angola Mining Report Q4 2013
- Kazakhstan Mining Report Q4 2013
- Mining Quarterly Deal Analysis - Q4 2012: M&A and Investment Trends
- Sustainability in the Global Mining Industry 2012-2013 - Market Trends and Opportunities, Profitability and Budget Forecast, Mining Industry Procurement and Marketing Initiatives
- Australia Mining Report Q4 2013
- Namibia Mining Report Q4 2013