Resource World Magazine

30 www.resourceworld.com A P R I L / M A Y 2 0 1 7 T he continent of South America is a destination of interest for explora- tion companies as most countries there are highly prospective and some are largely under-explored. The diverse poli- tics and stages of economic development of countries in South America means that they are not all equal in terms of economic and political stability or attractiveness to mining companies. Chile is home to some of the world's largest copper mines and, according to the USGS, Chile holds the largest reserves of copper globally. The Collahuasi copper mine of Glencore PLC [GLEN-LSE], 44%, and Anglo American PLC [AAL-LSE], 44%, and a Japanese consortium, 12%, situated in northern Chile, represents one of the world's largest copper reserves with estimated reserves of 3.93 billion tonnes of ore grading 0.66% copper. Brazil produces a variety of minerals but iron ore is one of the country's most important exports. Vale SA [VALE-NYSE] cut the ribbon on a massive iron ore mine in Brazil December 2016. The new mine, Vale says, is the largest in mining history. Peru is well known for its production of copper, zinc, silver and gold. Mining in Peru contributes significantly to that coun- try's economy which relies heavily on the taxes it receives from the mining sector. In reply to a question regarding what the Peruvian government is doing to help grow the mining industry and attract for- eign capital, Ricardo Labó, Vice Minister of Mines for Peru, told Resource World, "We have a strategy that has four pillars. The first one is to eliminate or diminish red tape and have better processes. Then we are doing a review on mining legislation with the objective to make them more realistic to respond to the reality of the activity. For the third pillar, we need to create the conditions for success in terms of social environment where the projects or operations are based. The last thing is that each project has its own particularity so we need to have a dif- ferent approach for each project and not a general strategy for everyone." At the recent PDAC Conference in Toronto, Javier Cordova, Minister of Mining for Ecuador, signed an agreement with the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). The objective of IGF is to optimize the benefits of mining to achieve poverty reduction, inclusive growth, social development and environ- mental stewardship. "Recent revisions to our mining and tax policies have helped Ecuador attract major investments and we anticipate the sector will grow significantly in the com- ing years," said Cordova. He told Resource World, "Three or four years ago, we were receiving about $30 million a year. Last year, it was more than 10 times that and this year we expect to have about a billion dollars in investment – just in mining. We are seeing, for example, 420 requests for new concessions." Germán Arce Zapata, Minister of Mines & Energy for Colombia, told Resource World, "We are working with indigenous people, Afro descendants, Black African Colombian communities and are having open discussions about how we can exe- SEVERAL SOUTH AMERICAN COUNTRIES ARE TAKING ASSERTIVE STEPS TO ATTRACT FOREIGN CAPITAL AND DEVELOP THEIR MINERAL INDUSTRIES Exploration & Mining in South America by Kathrine Moore

• Cover