Among the investment projects:

• BHP Escondida – Expansion Plan: Mineral: Copper. Region: Antofagasta. Cost: US$ 10 Bn. Production: 2023 – 2025.
• Codelco, El Teniente Division – El Teniente development plan: Mineral: Copper. Region: O’Higgins. Cost: US$ 7.5 Bn. Status: Execution. Production: 2023 – 2030.
• Antofagasta Minerals – Nueva Centinela Project: Mineral: Copper, molybdenum and gold. Status: Construction. Cost: US$ 4.4 Bn. Production: 2024 – 2027.
• Minera Meridian Limitada – Resource and Reserve Update Part II, Pampa Augusta Victoria de Faen Underground Exploitation: Mineral: Gold & Silver. Cost: US $ 5,6 Mn. Region: Antofagasta. Production: 2024.
• Wealth Minerals – Kuska lithium project: Mineral: Lithium. Status: Prefeasibility studies. Region: Atacama. Cost: US$ 800 Mn. Production: 2026 – 2028.

Request More Information here

Warm regards,

Catalina Velasco

LatAm Marketing Manager

cvelasco@vostockcapital.com

Ratings of several GREs with key roles in their respective economies and sectors have faced pressure in recent years. Downgrades to PEMEX (B+/Stable, Mexico) and Petroperu (CCC+, Peru) were driven by weakening standalone credit profiles (SCPs). Ecopetrol (BB+/Stable, Colombia) and ENAP (A-/Stable, Chile) were downgraded after negative sovereign actions. Both factors have contributed to downgrades of CODELCO (BBB+/Stable, Chile).

Related Content: GREs Under Pressure Could Affect Fiscal Outlook in Some LatAm Countries

The GREs’ strategic importance incentivizes governments to support them, and they are contingent liabilities to the sovereigns. Fitch says it does not think these would drive negative sovereign actions on their own if they materialized, because the level of support would be manageable, or because these liabilities are already incorporated into our sovereign analysis.

Fitch did not include LatAm GRE debt in its sovereign debt figures, as per our principal approach that focuses on consolidated general government debt. But the ratings firm says it considers it in qualitative analysis. Mexico’s ‘BBB-’/Stable rating is adjusted down by one notch from the Sovereign Rating Model output via Fitch’s Qualitative Overlay, as support for PEMEX has become material and sustained.

Neither did Fitch adjust the ratings of Chile (A-/Stable) or Peru (BBB/Negative), as support for CODELCO and Petroperu has not become recurrent and remains limited. Nevertheless, the recent deterioration in their SCPs underscores the possibility that they may require more direct financial support. ENAP will likely receive sustained, but not material, support from the Chilean authorities. Ecopetrol has not received support from Colombia (BB+/Stable) in the past decade.

The report “GREs Under Pressure Could Affect Fiscal Outlook in Some LatAm Countries” is available at www.fitchratings.com or via the link above.

Among the projects:

• Pozuelos-Pastos Grandes, Argentina. Company: Ganfeng Lithium, status: Engineering development. Investment: US $338 M
• Carmen Lithium Plant, Argentina. Company: SQM, status: EIA Approved – with an estimated investment of around US $987 M
• Blanco Project, Chile. Company: Codelco, status: Modeling. Investment: US $700 M
• Falchani Lithium, Peru. Company: American Lithium Corp and Macusani Yellowcake, status: Environmental assessment. Investment: US $700 M
• BMW Battery Plant, Mexico. Company: BMW. Investment: US $865 M
• Oruro Salt Flats, Bolivia. Company: CATL BRUNP & CMOC (CBC), status: Feasibility studies. Investment: US $1.4 Bn
• Salinas Lithium, Brazil. Company: Latin Resources, status: Exploration. Investment: US $57 M
• 20 other projects in Latin America

Request the full list of projects

See you at the congress,

Catalina Velasco

Latin America Marketing Manager

cvelasco@vostockcapital.com

Request the information here

Join “Mining Peru 2022” in Lima to meet leaders of industry and get the best practices for the mining sector- Register Here

Date: 6-7 April 2022

Place: Lima, Peru

Organizer: Vostock Capital

Website: https://bit.ly/3IIwl8y

Congress Highlights:

• Mining Peru is a strategic platform for the leaders of the mining industry, bringing together more than 200+ decision making executives from national and international companies, as well as government officials, regulatory bodies, academia, project owners, technology and services providers, and international and local investors
• 40+ investment projects on construction, expansion, and modernization of Mines with the development timeframe 2022-2028 from Peru
• Ask your burning questions, ask for advice and share your experience during and after the sessions!
• Strategic opening session: Mining Prospects for the Next Decade in Peru and Latam. With focus on the government’s strategy to maintain mining as the driving industry for economic growth in Peru and the region
• New Technologies to Produce Metallic and Non-Metallic Products: Innovations for Mining – successful case studies
• Round tables:
• Strategic Management of the Mine to Optimize its Productivity and Efficiency
• Keys to Bring Conventional Mining into the Digital Age
• Planning, Modernization and Construction of Prominent Mining projects in Peru and Latin America

Get to know the updates of the flagship projects in the region

• Attracting Investments in LatAm Mining Industry, Mechanisms to support projects, attract investors and projects finance
• ESG for a Responsible Mining and Safe and Effective Mining Operations analysis
• Dedicated exhibition of cutting-edge equipment and technologies for renewable energies industry delivered by local and global leaders
• Hybrid format: Connect with industry leaders while working from home through a secure Platform!
• Unprecedented networking opportunities!

1-2-1 online and face-to-face business meetings, networking round tables, cocktail reception, interactive discussions. Take this opportunity to exchange business cards with ALL conference participants!

Request the info here

Among the regular participants: ABB, BHP, Codelco, Cámara Minera de Chile, Fasser Southern Copper Corporation, Apumining SAC, Gold Fields, Marcobre, EY Mexico, Georg Fischer, AIME, Plateau Energy Metals, Capstone, TDM Group, ECTRICOL, ABCdust, Musco Lighting, IBwave and many others.

Best,

Catalina Velasco

Latin America Marketing Manager

cvelasco@vostockcapital.com

Meet the leading industry firms and discover the latest desalination innovations at Desalination Latin America – registration is already open

Date: 29-30 March 2022
Location: Santiago de Chile
Official website: https://bit.ly/3pyRD0V  

Organizer: Vostock Capital

Register now

Among the confirmed VIPs:

• Victor Gutierrez, Desalination Project Manager, Aguas Antofagasta
• Enrique Crust, CEO, Aguas Pacifico
• Pierino Venturini, Project Manager, Alto Maipo
• Pedro Ducci, CEO, Andes Iron
• Nicolas Madsen, Project Manager, BHP Billiton
• Jose Antonio Ramirez, General Manager, CKC
• Jose Gonzalez Martinez, General Manager, Cleanairtech Sudamerica
• Osvaldo Perez, Director of Water Resources, Codelco
• Mauricio Lorca, Head of Studies and Planning Division, General Water Directorate
• Patricio Herrera, General Manager, Econssa Chile
• Rodrigo Silva, CEO, TRENDS Industrial and many more.

Conference highlights:

• 250+ SENIOR EXECUTIVES from the main Latin American Desalination operators, technology leaders and industry experts
• 20+ DESALINATION PROJECTS in Latin America – ongoing and planned projects in the region
• Significant Potential of Desalination in Latin America.
  How to Maximize the Effort and Build Effective Industry?
•  Case Studies of Desalination Top Technologies and Innovations Implementation
•  How to Accelerate the Deployment of Desalination Projects, for What Costs? Ongoing, upcoming, and future projects, and the best strategies to be competitive in this new economic era
• Round Table for Top Management and CTOs
  Share experiences, case studies and doubts with top industry leaders
• Step-by-Step Guide, Best Innovative Ideas for the Construction of Desalination Plants
• Round Table for Solving Engineering Challenges: What are the engineering issues of desalination plants
• Operation of the Desalination Plants: Best Strategies to Reduce Environmental Impact in the Short Term
• Best Sources of Energy for the Optimization of Desalination Plants in Current Climate Challenges
• Dedicated exhibition of cutting-edge equipment and technologies for the desalination industry delivered by local and global leaders
• Unprecedented networking opportunities! 1-2-1 online and face-to-face business meetings, networking round tables, cocktail reception, interactive discussions. Take this opportunity to exchange business cards with ALL conference participants!

Among the confirmed participants of the 4^th edition of the Conference:

Colbun S.A., Aguas Antofagasta, Antofagasta Minerals, Aguas Nuevas, Aguas Pacifico, Alto Maipo, Collahuasi, Andes Iron, Mantos Copper, BHP Billiton, SEDAPAL, CKC, Southern Peru Copper Corporation, Cleanairtech Sudamérica, Codelco, General Water Directorate, Econssa Chile, TRENDS Industrial and many more.

Best,

Catalina Velasco
Latin America Marketing Manager
cvelasco@vostockcapital.com

Avianca, Digicel and Odebrecht recently defaulted on debt and have a combined $202 million due in 2020, most of which is debt held by issuers that did not participate in prior restructurings. This debt is not expected to be repaid. Travel restrictions related to the coronavirus will hinder Avianca’s ability to recover, while Digicel will struggle with weak currencies and pressured accounts receivable collections.

On the other hand, refinancing risk is manageable for CFE, ENAP and Codelco due to their ownership by the governments of Mexico and Chile, and they account for $4.9 billion of bonds falling due in 2020.

Refinancing risk is also low for America Movil, CSN, Bimbo, SABESP and SCC. Eight issuers are rated ‘B–’ or lower and account for $2.5 billion of the debt. Argentine issuers IRSA and YPF combined have $821 million of bonds maturing in 2020, with YPF accounting for 90%. Capital controls and market volatility impair Argentine corporates’ capacity to access international capital markets, execute liability management processes and service debt.

Fitch Ratings has published a report titled “Coronavirus Raises Risk On 2020 Latin America Bond Refinancings” that may be accessed by clicking here.

Agriculture, mining and fuel shipments represent a material percentage of GDP for many Latin American countries and revenue for the region’s largest exporters with China being a key destination. More than 25% of Chile’s, Peru’s and Brazil’s merchandise exports go to China, according to International Monetary Fund Direction of Trade Statistics, and the ability to quickly redirect commodity exports to other countries will be a challenge.

Prior to the outbreak, our outlook for Latin America was for a mild economic recovery with fiscal, political and governability risks challenging the region’s economy and ratings in 2020. Coronavirus introduces a new downside risk to growth expectations. The likely adverse economic effect is coming at a time when several countries are facing higher government debt burdens and struggling with the challenge to consolidate fiscal accounts amid a sluggish recovery. Therefore, the potential for fiscal stimulus to mitigate the impact on growth from the increased external headwinds is limited. Social unrest is also a challenge for some countries, most notably Chile.

Ratings on seven sovereigns have a Negative Outlook (Aruba, Bolivia, Colombia, Costa Rica, Guatemala, Panama and Uruguay) and only one has a Positive Outlook (Jamaica). In addition, Argentina remains in severe financial distress as reflected by its ‘CC’ Foreign Currency IDR and ‘RD’ Local Currency IDR.

Prices for copper, aluminum, iron ore, zinc and oil noticeably declined after the coronavirus outbreak, which led to aggressive government restrictions on travel and other economic activities. Chinese purchases of many natural resources represent a significant portion of world demand and exporter revenue. Mexico, Colombia and Ecuador have fiscal dependence on oil prices, while Chile and Peru are dependent on copper, resulting in these countries being sensitive to price shocks. Lower commodity prices are also a revenue headwind for Latin American exporters.

Fitch views some Latin American corporates as better positioned than others to withstand heightened commodity price volatility. Vale and Southern Copper are well positioned to manage through a period of price weakness due to their strong balance sheets and low cost structures. Conversely, Codelco and Volcan may be more vulnerable. Weak copper prices could hamper Codelco’s ability to fund capex from operating cash flow and its standalone credit profile, increasing its reliance on lenders for the cash short fall. Volcan has failed to reduce its absolute level of debt during the 2017 and 2018 peak in zinc prices. Lower zinc prices would further pressure cash flow and delay debt reduction.

Ecopetrol’s ratings reflect the strong linkage to the credit profile of Colombia and, therefore, have a Negative Outlook. PEMEX’s Negative Outlook reflects the potential for further deterioration in its standalone credit profile, which could result from the company failing to stabilize production and continuing with unsustainable reserves replacement ratios and negative FCF. Lower oil prices could add to pressures.

Beyond natural resources, revenue growth for Brazilian protein processors and Mexican auto-parts makers could also be affected by Coronavirus’ effect on China. Coronavirus is disrupting meat shipments to China due to local businesses being closed and backups at ports. Exports represented 25% of JBS’s global sales in 2018. Asia, primarily China, Japan and South Korea, represented about half of export sales. China is the world’s largest consumer of pork and is the largest automobile market in the world.