The world is more connected than ever, and mining technology and service companies are no exception. As they expand their reach globally, they need to follow their clients to new markets, from a copper mine high in the Andes to the icey cold winters of Northern Canada. When exploring new markets, it’s the classic “chicken or egg” dilemma: You want to see success before committing to the expenses of a local operation, but as soon as you start generating revenue, the risk of being classified as a PE increases.
It was previously time consuming and complicated to incorporate a company, particularly for foreign companies that were looking to enter the market. This changed in 2017 when a new corporate vehicle was introduced known in Spanish as Sociedad por Acciones Simplificada (“SAS”).
The USD$1.5b Santiago-Melipilla train project was announced last week. This project will increase ridership by 50 million per year and is part of a larger USD$5 billion “Chile on Rails” investment program.
The most common risk to companies operating in Latin America is related to employment laws and obligations. This week we will provide information on the mandatory leave that employees are entitled to as per Chilean Labour Laws.
Codelco has broken ground at the $1.4 billion expansion of the Salvador copper mine, which will extend the productive life of the aging operation by 47 years and increase output by almost 50%
Foreign companies operating in international markets need to be aware of how to manage the risk of corruption within their subsidiaries. This is particularly true in Latin America where operations can be far from the head office meaning local staff are often working with limited oversight.
Over the last 6 weeks, we interviewed maintenance professionals from both the Chilean and Peruvian mining industry. The idea was to provide foreign companies with an inside view into the local maintenance function from the perspective of those actually working in it. Check out our summary.
Santiago
Sydney
Lima