Friday, November 2, 2007

Mining Giants Account For Fifty Percent Of All Corporate Profits in Chile


Mining Giants Account For 50 Percent Of All Corporate Profits

(Nov. 2, 2007) Chilean enterprises have done well this year, showing an overall 12 percent increase in profits from January through September, as compared to 2006. Big winners are the mining and forestry companies.

Profits at all businesses are up by US$22 billion compared to September, 2006, according to figures by Chile’s Securities and Exchange Regulator (SVS). Total sales add up to 164 billion, a 14.9 percent increase compared to same period last year.

The two largest mining companies, state-owned CODELCO and BHP Billiton’s Escondida, accounted for 50 percent of total profits in Chile. CODELCO registered overall profits of US$6.7 billion in the first nine months of the year, while Escondida saw its profits grow to US$ 5.3 billion in the same period. But while Escondida’s profits are up by 28.3 percent compared to last year, CODELCO saw its profits diminish for the first time in five years, down by 7 percent. The state-owned mining company has seen its production costs rise considerably, affecting overall profits.

Of the country’s economic groups, the two largest, the Matte and Angelini consortiums, have profited the most this year. Cellulose-company CMPC - part of the Matte group - has seen its overall profit for the first nine months this year add up to US$377 million - an impressive 128.3 percent increase compared to the firsty nine months of 2006. Angelini’s CELCO showed an overall profit of US$534 million, a 25 percent increase compared to September last year. The positive numbers are attributed mostly to record prices for cellulose and a sharp increase in production capacity.

Here is the full article.