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Chile will invest $ 23.500 million to renovate its century-old copper mines

Chile will invest $ 23.500 million to renovate its century-old copper mines

Bloomberg News (Matt Craze)

Chilean President Michelle Bachelet, won last year’s victory in the elections of their country with the promise to increase spending on education. Now hastens to revive the largest source of government revenue, the copper producer Codelco.

At a time when executives of the state company warned that production could decline nearly half in six years, Bachelet has authorized Codelco spent $ 23.500 million on renovating centennial mines are running out of ore profitable, and has promised to sell $ 4.000 million bond as an additional source of funding.

While Bachelet has won approval of $ 8.200 million tax increases to pay an initial boost in spending on education, ensuring the viability of Codelco is vital to address the demands of a growing middle class better public services in the country’s richest Latin America.

Copper generates 20% of government revenues and 60% of Chilean exports.

“The government makes a strong bet that it will be important for Chile and its tax revenue,” he said in a telephone interview Santiago Gonzalez, a former Minister of Mining and Vice Chancellor of the Central University in Santiago. “If Codelco does not make those investments, production will decline.”

Gonzalez served as Minister of Mining of Chile between 2008 and 2010, during the first government of Bachelet at the top of a global commodity boom that provided huge profits to Codelco time.

Copper prices quadrupled in the decade to 2010 as part of a supercycle called tandem with the growing Chinese demand for all types of products from electric cables pipes.

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