Net accumulated Australian investment in Chile from 1974 to 2004 amounts
to a total of US$1461 million. The total authorized amount surpasses US$6000
million, and the materialized amount reaches US$2256 million.
In 2004, new investments in Chile reached/totaled US135 million, equivalent to 2.7% of total foreign investment. This places Australia as the 5th major foreign investor in Chile, after the United States, Spain, Canada and the United Kingdom.
The mining sector assumes around 90% of direct Australian investment in our country, with BHP Billiton holding the majority of investments due to the company’s 57.7% share in Minera La Escondida Ltd., Western Mining Corporation, Eltin, Newcrest and AMP also continue as important players in this field.
There has been considerable diversification in areas of investment, with new industries such as entertainment attracting considerable interest. New investment players include Hoyts Cinemas, AGL (gas distribution), Pacific Hydro (electricity) and more recently Rip Curl. The service sector has also diversified with new engineering companies, software development, human resources recruitment and others.
In total, there are around 55 Australian companies with foreign direct investment in Chile, more than any other Latin American nation.
Leading/Major Australian Companies In Chile – 2004
SECTOR |
COMPANY |
ACTIVITY |
Energy |
AGL |
AGL controls GAS VALPO, which provides a natural gas distribution network in Region V. |
Mining |
AMP |
AMP INVESTMENTS holds a strategic investment in El Tesoro copper and gold mines, as well as a joint venture exploration operation with the state-owned CODELCO. |
Mining |
BHP Billiton |
Controls 57.7% of the Chilean company La Escondida, which is in fact, the largest copper-mine in the world. BHP launched phase IV of an expansion of the mine on April 1st, 2003 with an investment of US$1045 million. The company has planned further investments for 2004, including the Spence Project which will consist of a PLANTA PARA DESALAR in Antofagasta, and a value of US$80 million. |
Agroindustry |
Burns Philp |
Yeast production |
Cinema |
Hoyts |
Hoyts holds 25% of the national Chilean cinema market, and 65% of that in Chile’s major cities. |
Construction |
James Hardie Asbestos Cement Ltd |
James Hardie is the world leader in the production of asbestos cement, with factories in the United States, Korea, Australia, New Zealand and, since 2001, Chile |
Mining |
Ludowici Tecpromin SA |
Since August, 2003, Ludowici Tecpromin has held the majority in a joint venture with TecProMin-Equipos in Chile |
Mining |
Mincom International Ltd. |
Mining software |
Mining |
Orica Chile |
Bought by Orica Australia in 1998, Orica Chile is the global leader in the production and distribution industrial explosives in the Chilean market, and the sale of laboring accessories for mines and civil construction |
Mining |
Otraco Chile |
Otraco International Pty provides services to the mining industry, with offices in Australia, Chile and Indonesia. Otraco Chile works in the La Escondida, la Disputada Los Bronces y La Mina Sur mines. |
Energy |
Pacific Hydro Ltd |
In 2004 Pacific Hydro bought the Coya and Pangal hydroelectric projects from the state-owned CODELCO, representing an investment of US$75.6 million. Further, in June, 2004, Pacific Hydro launched a joint venture with Statkraft Norfund Power Invest for the development of the Higuera Project in central Chile |
Mining |
Rio Tinto Mining and Exploration |
Together with BHP Billiton, Rio Tinto invested in Chile’s La Escondida mine. |
Services |
Sinclair Knight Merz Consulters Ltd |
Mine engineering services |
Mining |
SMC Gold |
SMC Gold bought the Chilean Minera Tamaya CSM mining company in June, 2004, which specializes in copper and gold. The investment is worth US$4.8 million |
Mining |
Western Mining Exploration SA |
Mining exploration |
Mining |
Xstrata-MIN |
Mining Exploration |
Source: Chile Foreign Investment Committee
In investment regime in Chile has created numerous interesting opportunities
for Australia while allowing for the enhancement of her presence as an investor.
A great number of primary materials exporters and product manufacturers have
based themselves in the Chilean market. Owing the diverse range of complementary
economic agreements signed by Chile, Australia is afforded less discriminatory
treatment than Chile’s Latin American neighbors. As a result, Australia
is in apposition to use Chile as a platform to extend her presence into the
remainder of the sub-continent.
It is likely that Australian investment in the mining sector will continue
to grow given the present economic climate. On the other hand, the viticulture
industry, being a strongly export-orientated sector, also holds great potential
for Australian companies looking for investment opportunities. More generally,
this foreign investment potential is apparent in all services related to
primary materials and manufacturing, particularly with regard to exports
directed to the northern hemisphere.
For information about current trends and opportunities in mining, telecommunications and food and beverages sectors in Chile, visit the corresponding documents prepared by AUSTRADE.
Last updated: March 24, 2006