Press Release|Sovereigns
KBRA Releases Research – Chile’s Mining Sector May Boost Government Revenue
19 Aug 2024 | Dublin
KBRA releases research illustrating how Chile’s mining sector may boost its government revenues over the coming years. The mining sector is critical to Chile's macro economy and government finances, as indicated in KBRA’s latest credit analysis of the sovereign (AA-/Stable Outlook for local currency, A/Stable Outlook for foreign currency). In the research piece, KBRA conducts scenario analysis on the outlook for copper mining revenue and how this can support Chile's government income, helping to narrow its budget deficit. The increasing demand for metals like lithium and copper is also discussed.
Key Takeaways
- Rising mining revenues, which stem from higher commodity prices, typically helps narrow Chile’s budget deficit.
- Demand for copper from China has slowed but remains dynamic.
- Sizable government income uplift is expected in coming years. KBRA’s stressed revenue outlook for the mining sector still indicates noticeable strength.
Click here to view the report.