Weaker copper prices to wallop Chile's treasury
Bnamericas - Lower copper prices will hit Chile’s treasury this year to the tune of 296bn pesos (US$345mn), according to budget office Dipres.
State copper miner Codelco will contribute 788bn pesos to fiscal coffers this year compared with 1.08tn pesos forecast in January.
Mining minister Baldo Prokurica has repeatedly said that for each cent the average copper price drops, Chile’s treasury loses approximately US$60mn.
“We must ask the main state company of the country [Codelco] to assure the maximum generation of resources. The contingency that we’re currently facing makes Codelco’s contribution more necessary,” finance minister Ignacio Briones was reported as telling last week’s Codelco shareholders meeting.