|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||24.00 - 24.00|
|52 Week Range||9.03 - 26.45|
|Beta (5Y Monthly)||0.94|
|PE Ratio (TTM)||46.69|
|Forward Dividend & Yield||0.55 (2.28%)|
|Ex-Dividend Date||Apr 22, 2021|
|1y Target Est||N/A|
(Bloomberg) -- The copper producer owned by Chile’s richest family says broad tax reform probably will be needed to reduce the nation’s inequalities, and authorities shouldn’t just single out mining.A proposed 3% royalty on copper sales that’s about to go before Chile’s senate would squeeze higher cost mines when prices of the metal inevitably fall, said Ivan Arriagada, chief executive officer of Antofagasta Plc, which is controlled by the Luksic family. The current sliding royalty on profit should be allowed to play out in today’s high-price environment rather than introducing a new system, he said.As the top copper-producing nation prepares to draft a new constitution after the biggest spate of social unrest in decades, opposition lawmakers are seeking a larger piece of the metal windfall to fund social and environmental programs. While Arriagada understands the need to lift government revenues, he said a tax on copper sales risks inhibiting development in the industry.“Taking into consideration the competitiveness of the industry on a global basis is quite important,” he said in an interview. “A long-term perspective on public policy is absolutely crucial.”His comments were echoed by participants at a CRU copper conference Monday, with Chile’s Energy and Mining Minister Juan Carlos Jobetcalling the tax bill unconstitutional because its was presented by the opposition.Arriagada expects the constitutional process -- while challenging and not without risks -- eventually will bring greater social cohesion and stability, befitting the industry. Mining has a key role to play in helping expand social services and public goods, not only through taxes but also high-paying jobs and supporting vendors and innovation, he said. As long as the industry has incentives to grow, “then it will contribute more to the country,” he said.Some kind of tax changes will be needed, Arriagada said. “I would expect that a sound reform which is predicated on long-term economic principles would have all sectors in the economy contributing in the long term and I don’t think that an industry needs to be singled out.”Stressing a long-term approach is part of his copper view. While the market is well supported by recovering economies and an accelerated transition to clean energy, it isn’t in a supercycle. “I don’t think there is anything structural that’s changing from what we had before.”More From the InterviewAntofagasta has stepped up its sanitary protocols as Covid-19 cases in Chile surge to record levelsArriagada doesn’t expect output or exports to be affected as long as the nation’s tighter lockdowns flatten the curveA decline in production at its biggest mine in the first two months of the year was due to maintenance and lower grades, with output basically running to planAn expansion at Los Pelambres will add about 60,000 tons a year from 2023, while the company may pull the trigger next year on a mill project at its Centinela facilityHe doesn’t expect to accelerate projects due to high pricesWhile most of the company’s growth potential right now is organic, Antofagasta is regularly “scouting” for acquisition opportunities“History tells us there are not a lot of good copper assets that get traded”Company is looking at green hydrogen pilot projects and talking to equipment providers in a bid to cut diesel use(Updates with comments from conference in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- All the talk about how green hydrogen will help heavy industries kick their fossil fuel habit is starting to turn into action in the biggest copper-producing nation.An Anglo American Plc pilot project has been supplying the clean gas to a forklift at a waste facility in Chile for the past two months, with the London-based firm now eying transitioning other equipment and eventually large trucks, Chile manager Aaron Puna said. Antofagasta Plc is also looking into pilot projects to run equipment on hydrogen, Chief Executive Officer Ivan Arriagada said. Even Codelco, the giant state-owned producer, is making contact with companies with a view of introducing the fuel into its operations.Green hydrogen -- produced by stripping the gas from water using electrolyzers powered by wind and solar -- is seen as key to eliminating carbon emissions from the industrial sector. Chile, home to massive copper deposits as well a plenty of renewable energy capacity, wants to nurture a local hydrogen industry to help meet its target of becoming carbon neutral by 2050 and help mining companies make the switch at a time of rising scrutiny by investors.Most large mines in the country are already transitioning to renewable power and turning to electro-mobility. Hydrogen is the next frontier.“These changes tend to happen quicker than we can anticipate,” Arriagada said in an interview. “But the technology needs to develop and there’s multiple stakeholders that need to come together. We want to be active in enabling and facilitating that to the extent that we can.”Antofagasta is “talking to several people and thinking of our own pilots as well to be able to move in this direction,” he said.Anglo is a little further along. After developing the forklift project, it’s looking to replace diesel engines in other equipment such as cranes as well as using lessons from a prototype hydrogen truck in South Africa to possibly replace its entire fleet at the Los Bronces mine. The goal: eliminate diesel entirely by 2030, Puna said.While Codelco is reaching out to would-be providers, Chairman Juan Benavides said talks are at an early stage. “Green hydrogen has several obstacles to resolve to become competitive,” he said in an interview. “Today, it’s promising, but expensive.”The Chilean government has identified about 40 projects in industries including mining and plans to award $50 million in subsidies this year with a view of reducing the cost of electrolysis and scaling up production. Authorities are also setting up a technical advisory team to lay out a path toward higher carbon prices that would allow green hydrogen to better compete with fossil fuels.“Moving into the hydrogen space, there’s always going to be barriers,” said Anglo’s Puna. “There’s a lot of interest. There’s a lot of people that want to be involved in different ways and it’s really ‘how do we bring all of that together to make something that works for everyone.’”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Workers at the Los Pelambres copper mine in Chile accepted a wage offer in an eleventh-hour deal that averts a strike at Antofagasta Plc’s largest operation.Members voted 71% in favor of the proposal after a lengthy negotiation including two weeks of government mediation, the union said. The new contract includes a 3.4% real pay rise and bonuses and benefits of 19.5 million pesos ($27,000) per worker.A wage accord at a mine that accounts for about 6% of Chile’s copper production will ease concerns over tight global supplies that had helped send the metal to the highest prices in almost a decade. Chile, which accounts for more than a quarter of mined copper, is facing a slew of collective bargaining this year at a time when high prices embolden unions and companies battle to keep costs in check.Antofagasta, owned by Chile’s richest family, managed to escape strikes at two of its other mines last year with last-minute wage deals.The new three-year contract at Los Pelambres “has a clear focus on productivity,” the company said in a statement Tuesday. Benefits include an end-of-negotiation bonus of 10.5 million pesos and a loan of 3 million pesos, it said.Another Los Pelambres union, representing 89 concentrator plant workers, is also in the final stages of the collective bargaining process. The mine produced 372,100 metric tons of copper last year, Chile government data show.(Adds contract details in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.