Henry Ziemer, an associate fellow at the Centre for Strategic and International Studies (CSIS), says the region is rich in minerals, especially copper and lithium, whose demand is expected to soar, as well as more specialised minerals like nickel, rare-earth elements, and niobium, which are used in steel and aerospace manufacturing.

The International Energy Agency (IEA) predicts that over the next 15 years, the world’s demand for lithium will grow by a factor of 40, and by 2028, S&P Global Market Intelligence estimates that it could surpass current worldwide production output.

Additionally, according to the IEA, demand for copper would increase by 40% over the next five years, surpassing current production by 2030.

Demand for lithium is more susceptible to shifting market conditions in the green energy sector, especially if the Trump administration reduces carbon emission targets and withdraws the US from the Paris Agreement.

However, Ziemer contends that this is not the case for copper, which is “almost certain to remain high in demand as it will be critical for applications ranging from green energy and electric vehicles to the wiring needed to power AI data centres.”

According to IEA data, Latin America is home to seven of the top ten most productive copper mines in the world and has about 60% of the world’s lithium and 40% of its copper reserves. Furthermore, the region is home to the majority of the world’s top producers of the two metals, with Chile and Peru leading the list for copper and Bolivia, Argentina, and Chile leading the list for lithium.

Supply chain diversification

Diversifying mineral supply chains is becoming a major corporate and geopolitical concern as the United States and China compete more fiercely, especially in the technology sector, and as rising demand further strains global metal supplies.

According to United Nations data, over 40% of the world’s capacity for smelting and refining of copper, lithium, rare earths, and cobalt is in China.

The World Bank noted that China was responsible for a staggering 65% of Chile’s mineral exports in 2021, which amounted to almost 6% of Chile’s GDP in Latin America.

Melissa Sanderson, a board member of American Rare Earths, said, “China’s market dominance allows it to exert significant influence over global pricing, whether by increasing or restricting exports of key commodities or by implementing other restrictions on key materials.”

Canadian Prime Minister Justin Trudeau recently stated that the nation’s mineral and metal resources are a major factor in US President Donald Trump’s ambition to annex Canada. Given China’s dominance of vital minerals worldwide, he noted, “this is a strategic vulnerability for the US vis-a-vis China, as it is for much of the Western world.”

Trump vowed to further divorce from China’s midstream supply chain and announced a national energy emergency as one of his first actions as president in his second term. Beijing replied to his announcement of a 10% global levy on Chinese imports by, among other things, limiting the export of minerals that it utilises in its supply chain.

Companies are also being prompted to disengage from their existing mineral supply networks due to the growing threat of a trade war.

Tim Heneveld, country director for Pergolux in North America, said, “Trump’s early signals have supply chains on edge, especially in industries that rely on manufacturing and critical materials. Businesses are reconsidering their material sourcing practices; many are trying to find new suppliers or move their operations to areas with lower geopolitical risks.”

However, there will be a price to pay for creating more robust mineral supply chains, according to Laura Dow, Business Director at CPG Buying, a company that focuses on buying goods and materials from China.

“Businesses that put a strong emphasis on a supply chain that is balanced and future-proof will be the most successful in the long run. This dynamic has prompted the US and Canada to seek stronger partnerships in Latin America to diversify and secure their critical mineral supplies,” says Iggy Domagalski, CEO of Wajax, a Canadian distributor of industrial products and services.

Reaching maximum potential

Although some of the world’s largest reserves of rare-earth elements and essential minerals are found in Latin America, much of this remains unexplored. Additional expansion might be a crucial remedy for the world’s supply networks, which are becoming more stressed.

According to a study co-authored by Economist Impact and JP Morgan Private Bank, “The region, with a few exceptions, has not yet been able to realise its full potential in the value chains for critical minerals, and therefore in those for clean energy and digital components.”

“The environmental and physical costs of increasing mining are being borne by many communities. However, given competing local and global geopolitical objectives and growing environmental concerns, boosting the sector may prove to be a challenging task. Furthermore, local interest in creating sourcing networks is also constrained by a historical discrepancy between the region’s midstream output and raw material production,” CSIS’s Ziemer commented.

Isabel Al-Dhahir, senior analyst at GlobalData, parent company of Mining Technology, believes that China has become a major force in the midstream copper and lithium market in Latin America over the past 20 years, thriving in the void created by the governments of the region’s lack of investment.

She cautions that this reduces Latin America’s geopolitical clout and restricts the area to selling raw minerals to the Chinese and other international investors.

As per Economist Impact and JP Morgan Private Bank, this disparity is ascribed to “a multitude of factors, including an increasingly complex regulatory environment, lack of critical infrastructure, and low extraction and processing capacity, to name a few.”

“By 2030, global demand is expected to outpace production for key inputs like lithium and copper, making the opening of new mines an ongoing challenge. New projects must be developed as quickly as possible to avoid a global shortage of certain essential minerals, since it can take years or even decades from the time a mining claim is staked to the first output,” Ziemer noted.

Redressing past inequities

Due to these conflicts, the local populace mistrusts the industry’s efforts to promote regional growth, especially the opening of new mines, which is a crucial prerequisite for increasing output.

Ziemer said that “many communities in Latin America find themselves bearing the environmental and physical costs of increased mining, so the increase in demand (for critical minerals) has come with a price.”

Local governments have responded to this by increasing state support and forming more public-private partnerships, which have led to a diversification of supply chains for production and output.

The largest economy in the region, Brazil, which has the third-largest nickel and rare-earth element reserves in the world, has committed $815 million to supporting projects in the field “in the context of sustainable and technological development,” according to a statement made last month by Aloizio Mercadante, president of Brazil’s National Development Bank.

In an effort to further domesticate the midstream lithium industry, Chile’s government-run copper mining company, Codelco, and lithium manufacturer Sociedad Química y Minera de Chile signed a 35-year contract to jointly develop the vast lithium resources in the Salar de Atacama salt flat between 2025 and 2060.

To further diversify the country’s long-term sourcing away from China, the government of lithium-rich Argentina recently signed a cooperation agreement with the US.

These actions follow strong opposition to foreign mining ventures in countries such as Bolivia, Chile, and Panama, most notably leading to the recent closure of the Cobre Panamá mine amid environmental concerns and widespread public unrest.

“The incident further highlights that countries and their citizens are not willing to accept an unrestricted expansion of mining based solely on demand for critical minerals,” Ziemer warns.

Changing partnerships

The worldwide competition for vital minerals is a complicated geopolitical struggle in addition to an economic one. Latin America, which is caught in the crossfire of geopolitical interests, is significantly impacted by the fierce competition between the US and China.

China has long influenced global pricing and supply chains by using its hegemony in the smelting and refining of minerals. However, the United States and its allies are now looking for alternate sources of vital minerals due to recent trade conflicts and tariffs, including those imposed by the Trump administration. As a result, Latin America, with its vast reserves, has emerged as a crucial theatre in which these superpowers compete for influence.

Many Latin American countries are seeking to exert greater control over their mineral resources in response to growing external demand. Efforts such as negotiating more favourable trade agreements with major economies and forming regional alliances are gaining traction. In an era where political power and resource control are increasingly intertwined, these measures aim to safeguard national sovereignty while securing economic benefits.

ESG factors and investment risks

Environmental, social, and governance (ESG) factors are becoming important to investors as they assess possible projects. This change poses an opportunity for the mining industry in Latin America.

Global investors are closely monitoring mining companies, demanding responsibility, sustainability, and transparency in their operations. Mining-related social and environmental hazards, including ecological harm, community uprooting, and regulatory uncertainty, can have a big financial impact. Investors now prioritise businesses that integrate strong ESG processes and show a dedication to long-term sustainability above those that only focus on short-term profits.

For investors, the current geopolitical environment adds another level of risk. The stability of mineral markets can be impacted by trade disputes, shifting alliances, and erratic governmental changes. As a result, many investors are becoming wary about depending heavily on one area or provider.

Diversification is becoming a crucial tactic for reducing these risks, geographically and in terms of production methods. Businesses that make investments in diverse supply chains, local processing capacity, and environmental practices have a better chance of surviving future market turbulence.

We are at a turning point in the search for critical minerals. On one hand, the twin forces of digital transformation and the transition to green energy are expected to drive a global surge in demand for copper, lithium, and other key resources. On the other hand, the race to secure these materials has exposed long-standing challenges related to social inequality, environmental degradation, and geopolitical instability.

Development in Latin America must be sustainable and inclusive if the continent is to reach its full natural riches potential. This entails making certain that local communities gain from resource exploitation by investing in public services, creating jobs, and sharing revenue.

At the same time, businesses need to embrace more environmentally friendly technologies and follow global guidelines that safeguard human rights and the environment. Long-term success in the area can only be attained by finding a balance between social responsibility and economic progress.

Technological developments present encouraging answers to many of the problems the mining sector faces. Technology may significantly increase operating efficiency and sustainability, from more effective extraction methods to the incorporation of renewable energy and digital monitoring systems. Governments and corporations in Latin America must cooperate to fund R&D, creating an innovation ecosystem that can adjust to changing international norms.

Latin America now plays a crucial role on the world scene as a result of the ongoing US-China conflict. However, by creating its own value chains and regulatory frameworks, the region must also demonstrate its strategic autonomy.

The Latin American nations can reduce their dependence on any single foreign power by strengthening ties with both long-standing partners and emerging markets. Beyond enhancing national security, this balanced approach provides the flexibility needed to navigate an increasingly complex global landscape.

Final thoughts

Latin America’s mineral wealth is positioned to be a key factor in the world’s ongoing transition to a more technologically advanced and connected future. But wisely utilising this potential is the difficult part. The region can transform this new battlefield into a global paradigm for how natural resources can propel revolutionary economic and social advancement with careful policymaking, inclusive practices, and a dedication to sustainability.

The competition for essential minerals is more than just a matter of supply and demand in a world characterised by swift technological advancements and shifting geopolitical alliances. Environmental stewardship, cultural rights, and economic imperatives interact in a complicated way.

A microcosm of the greater global fight for sustainable development is Latin America’s quest to benefit from its mineral wealth while making sure that the expenses are fairly distributed.

A more resilient and responsible future may be modelled after the lessons learnt here, which include investing in cutting-edge technologies, rethinking conventional resource extraction strategies, and striking a balance between local and global demands.

The stakes have never been higher, yet the road ahead is certainly difficult. Latin America’s vital minerals will continue to be at the forefront of this revolutionary change as countries across the world rearrange their supply networks and reevaluate their strategic goals.

The region has a rare chance to change not just its own fate but also the direction of global manufacturing and technology, whether through increased community involvement, progressive regulatory changes, or the adoption of cutting-edge green technologies.

Acquiring raw resources is only one aspect of the conflict over Latin America’s vital minerals, while the other is the fair allocation of rewards and obligations. A balanced strategy that incorporates economic, social, and environmental factors is crucial as the globe moves toward smarter technologies and greener energy.

Only by doing this will Latin America be able to turn its abundant but frequently underutilised resources into a driving force for long-term development, guaranteeing that the promise of mineral wealth is fulfilled in ways that benefit local communities, protect the environment, and strengthen the region’s position in a world growing more multipolar.

The post Latin America’s emerging minerals battleground appeared first on International Finance.

Lithium is essential, be it manufacturing batteries, electronics, or any other technological commodity. Given the high levels of demand and consumption of the material, dependable supply networks are a must to ensure effective production processes.

Abundant natural resources

Mining operations in Chile produce a wide variety of minerals and metals, including copper, gold, iron ore, lithium, and silver. Since lithium is essential to the operation of renewable energy sources like smart grids and electric cars, its manufacturing has grown in importance.

The Chilean government has made significant investments in the growth of the lithium sector.

They intend to encourage international investment through public-private partnerships, invest in research and training programmes for people involved in lithium extraction, improve infrastructure for easier transportation of mined material, and offer tax advantages for new enterprises.

In addition to enabling Chilean businesses to expand operations quickly, the country’s easy access to international markets and easily available resources enables other nations to source this precious metal more efficiently from their supply chains.

In recent years, the production of lithium and related technologies has grown in importance as a source of income. Many countries are attempting to safeguard their supply of the mineral by investing in more effective extraction and refining techniques.

Approximately 40% of the lithium produced worldwide is currently produced in Chile. This places it among the top producers in the world, holding a sizable portion of the resources and the technologies associated with it.

Utilising cutting-edge mining methods, Chile can extract ore of a better grade than other nations. This enables them to continue offering lower pricing than rivals from Asia and Europe. They have therefore succeeded in capturing almost half of the world’s lithium use in recent years.

To cut costs without sacrificing customer needs, many nations are now looking to other sources, such as renewable energy storage systems or recycled batteries from electric cars. Despite this pattern, Chile is still a significant supplier of competitively priced, reasonably priced lithium products to the world market.

Because of its robust infrastructure and affordable operating expenses, the nation is a desirable choice for manufacturers looking for dependable suppliers in the face of unstable geopolitical environments. Chile is an essential component of any thorough analysis of the status of the global lithium market today and its prospective future growth trajectory because of these characteristics.

A 2019 research by the University of Antofagasta and the Chilean government found that Chile accounts for more than 30% of the world’s lithium deposits. This demonstrates the substantial influence Chile’s mining sector has on the global supply of this priceless resource.

There are several financial advantages to Chile’s participation in the lithium sector, including employment creation. Mining activities give locals jobs, especially in outlying communities where there are not many other options.

Improved foreign investments also help the Chilean economy through taxes and royalties, businesses wishing to buy or invest in local mines greatly boost Chile’s economy.

This leads to economic growth, enhanced living standards and better infrastructure. Chile must keep formulating plans as other nations join the lithium market. This will guarantee that its resources are used ethically and effectively while upholding high standards. By doing this, Chile will be able to maximise its profit share in the lucrative global lithium market.

Government laws on lithium mining

The three main pillars of Chilean policy around mineral exports and mining are renewable energy, economy, and safety.

Chile has imposed stringent regulations on miners, including the need for them to pay taxes on any earnings from their activities. Furthermore, foreign businesses who want to conduct business within the nation’s borders are subject to limitations. In addition to safeguarding against possible foreign exploitation, the goal is to guarantee that Chilean enterprises profit from resource extraction.

The country also has strict legislation about renewable energy projects, with an emphasis on ensuring lithium-using facilities follow environmental regulations. This guarantees that businesses generate as little waste or pollution as possible while they are operating. Furthermore, to lessen the burden on natural resources, a lot of organisations are required to use recycled materials whenever feasible.

Several regulations are in place at mines and other associated locations where lithium is extracted or processed to safeguard employees and prevent mishaps. These include the need for appropriate safety gear, frequent inspections, and management-employee communication regarding potentially dangerous situations or processes.

Foreign involvement in the sector

Businesses like Tesla, Apple, and Microsoft have partnerships with some of the top mining businesses in Chile to gain a position in the global lithium market.

These investments offer worldwide markets and Chilean miners a profitable chance. This means that miners will be better protected against changes in export prices. Foreign companies can benefit from lower input costs because of localised labour prices and enhanced technological platforms.

Moreover, these expenditures indicate a change in the sector toward more environmentally friendly practises. By employing contemporary technologies, manufacturers may lessen the waste and emissions linked to the extraction of lithium, which makes them far more desirable partners when seeking to invest in the resources of any given nation.

Lithium battery production is depending more and more on cutting-edge technologies. This has made it possible for battery production to quickly develop in terms of efficacy, affordability, and safety. The emergence of novel technologies, including solid-state battery cells, has made it possible to store more energy in smaller forms at a cheaper cost.

The worldwide lithium market has also been completely transformed using nanotechnology to anode designs that are more effective at charging and discharging lithium ions.

Robotics allows battery manufacturing facilities to produce large quantities of batteries with lower error rates than manual procedures. Automated assembly lines have the potential to boost productivity, lower labour expenses, and enhance product quality assurance.

There is now more rivalry among lithium battery suppliers and manufacturers, which has raised industry performance standards.

Effect of lithium on EV production

The lithium market in Chile can revolutionise the worldwide electric vehicle industry.

Due to its many desirable qualities, Chilean lithium is perfect for use in batteries that power electric cars. For producers wishing to grow into the manufacturing of electric vehicles and associated components, this may present new prospects. In addition, the extraction of lithium from Chile may lessen dependency on fossil fuels and other energy sources, contributing to a more sustainable future.

The use of lithium from Chile has the potential to transform existing smart grid and renewable energy source technologies. Larger amounts of energy from renewable sources may be stored via smart grids, which would also enable more effective information transit between devices. With these technological advancements, renewable energy sources like solar and wind power might be integrated more successfully.

Consumers who depend on electric cars or want dependable access to electricity generated by renewable resources will eventually profit from these advancements. The expanded accessibility to effective transportation networks across the globe or better options for individuals looking for environmentally friendly solutions could arise from the increased availability of Chilean lithium.

Chile’s lithium market’s future

With one of the biggest lithium markets in the world, Chilean authorities have several options for strengthening their nation’s standing in the sector.

Among them are assisting in the development of new extraction techniques and ensuring that current operations adhere to environmental standards. They are also offering rewards for foreign direct investments, and are encouraging regional companies to take part in value-added initiatives linked to the production of lithium.

Authorities are also investigating potential domestic and international partnerships between public and private actors.

Chile has to pursue these tactics in addition to engaging with other nations through trade agreements or joint ventures to develop the sector and effectively realise its full potential within the global lithium market.

Furthermore, for investments to benefit all stakeholders sustainably, they must be made with ethics and responsibility. Chile will be able to capitalise on its natural resources and establish a dominant position in the global lithium market with sustained support from national leaders and long-term planning grounded in sound economic analysis.

The post Lithium Powerhouse: Chile’s rise to prominence appeared first on International Finance.

The factor responsible for this is the increasing competition among FinTech firms, who are committed to the cause of promoting financial and digital inclusion among their customers, and ultimately contributing to innovation in the country.

One such company is Tenpo, a Fintech venture, which was born a few years ago with the purpose of transforming the finance industry. As it completes its third anniversary, Tenpo has managed to serve 1.8 million customers, through its wide range of products and financial services.

The Market Commission Financiero (CMF) recently published its first report on “Issuance of credit cards bank and non-bank payment with the provision of funds”.

The study evaluated aspects such as card holders in force, cards with monthly operations, number and amount of transactions, among others, within Chile. Tenpo did tremendously well in this study.

Knowing Tenpo app in detail

Tenpo was born with the vision of democratizing the world of finance through technology. The venture is regulated by the Commission for the Financial Market (CMF), the same entity that supervises large traditional banks in Chile. Tenpo seeks to transform the financial system in a more inclusive and fair method.

“The application allows you to manage your money from your cell phone easy, fast and safe way. Through the platform you can make purchases abroad, make phone recharges and pay bills for all kinds of basic services,” the venture commented.

The app offers a digital account with digital and physical prepaid cards, through its alliance with Paypal, a personal finance management service, payment of utility bills, free ATM withdrawals, and a salary deposit facility. The app users can also send money to their near ones abroad. Tenpo recently launched its first insurance product in partnership with the largest insurance company in the Chubb World.

Apart from increasing its customer base, Tenpo’s aim is also to surprise the FinTech sector by continuously launching innovative financial products and services, which will set new trends in the market.

‘Your financial app, your digital account’ is the tagline of the Tenpo app, which comes with features like no maintenance costs, no balance limits, easy transfers between banks and ATM withdrawals.

Products and services offered by Tenpo app

With the Tenpo prepaid Mastercard card, the customer can buy products not only in Chile, but abroad as well. The individual needs to enter his/her Tenpo Mastercard card as a means of payment for international and national purchases. AliExpress, Amazon, Netflix, Uber, Rappi, Spotify, Paris.cl, Salcobrand, Weplay, Adidas, Casa Ideas, Easy, Telepizza, name any online shopping portal, the card works with ease. And the user doesn’t need to pay maintenance expenses for using the card.

Talking about transferring money through the Tenpo app, the FinTech venture’s ‘Zero Cash’ facility enables its users to share the contacts of their friends, colleagues and family members on the app and split the bills.

“Does your friend, colleague or family member still not pay you for his share of lunch? Send a reminder with ZEROCASH,” the venture commented on its website, while explaining the product.

And yes, the app also comes with a contactless payment mechanism.

“To pay you just have to enter the “transfer” section and select the “transfer to tennis player” option. You will see that you can choose between sending a payment or making a payment. Select the option “make a payment”, then select the contact you want to pay, enter the amount and confirm with your Tenpo password,” Tenpo commented, while discussing the FAQ ‘How can I pay someone else?’ on its website.

The ‘Zero Cash’ user can collect and pay from USD 1 to USD 5,000,000 via the facility. Also, money transfers between Tenpistas (Tenpo app users) are free. In case the user receives a charge (payment request) from an unknown number, he/she can reject the charge by selecting “reject” on the ‘Zero Cash’ section, to protect his/her account and money.

The Tenpo-PayPal dollar wallet helps users to add, save and withdraw PayPal dollars directly from the latters’ Tenpo App in a simple, safe and immediate way.

The whole withdrawal process takes USD 2.5 per transaction, with no commission being required.

Users will get facilities such as adding dollars to their wallets and saving in an international currency, withdrawing dollars to Chilean pesos directly via Tenpo accounts and checking their wallet balance online. The user can also buy in international stores, apart from sending money to other PayPal accounts and receive payments in USD.

The app also helps its users to manage their finances, by categorizing the money movements into essential and leisure segments,

“Each purchase, bill payment, recharge or other, will be registered in one of the categories created for you. We notify you of each transaction and which are the categories in which you spend the most and your savings. Manage your money knowing how you distribute it: investment, savings, expenses. We show you your movements grouped by categories and tags that allow you to know in detail what you spent on,” Tenpo commented.

Tenpo’s money transfer facility allows its users to make money transfers to Argentina, Peru, Bolivia, Colombia, Paraguay, Uruguay, Brazil, Mexico, Venezuela and Haiti, with convenient commissions.

“Simplify your shipment by sharing the recipient link. Forget to fill in the recipient’s details. From now on just share the link and let the person you want to send money to do it for you! much simpler,” the FinTech venture commented.

The user can track his/her money transfer in Tenpo’s movement history at any time, as the app will show the person the crucial details like the recipient, date, status, shipping amount, and destination, from time to time, till the money reaches to the desired person.

Tenpo also provides investment services. One of them is a mutual fund. Tenpo’s mutual fund is 100% digital. The investor can put his/her money starting from USD 1,000, apart from getting seven mutual funds that fit the investor’s financial profile.

Once you invest in this mutual fund, you need to pay a yearly commission of 1.17%. The withdrawal of the money from the fund won’t hurt the investor financially as well.

Tenpo getting globally recognised

Tenpo was recently awarded two ‘IF Design Awards’ for the excellent design of user experience (UX) and user interface (UI) design by the FinTech venture’s mobile app.

With over 60 years of experience, the ‘IF Design Awards’ are recognized for highlighting and promoting excellence in the design of products and services. Each year, a panel of independent experts selects the most innovative and well-designed designs, which makes the award highly coveted.

UX and UI designs are integral parts of any application/website, and are essential to provide users with a satisfying experience. In Tenpo’s case, the awards were given as the app’s design was not only found visually attractive, but also it met high-security standards.

‘IF Design’ also noted that Tenpo uses an interface design of a single user, which guides the person in each of the available actions.

By providing a user-friendly and secure experience, Tenpo has been able to improve the lives of its customers by providing them with access to financial services in a simple manner and with a wide portfolio of benefits.

The ‘IF Design award’ given to Tenpo proves that the platform is leading the way, when it comes to a FinTech app’s innovation and design. The company is making its presence felt, both in Chile and around the world.

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The pension reform bill was presented to the Congress earlier this week for an immediate discussion and it is going to cost the government $1.1 billion per year, according to a statement released by President Sebastian Pinera.

The current bill will increase a basic solidarity pension to around $230 and will also extend coverage to about 80 percent of the population.

Taxes will be reimposed on capital gains that trade liquid assets, along with the levies made on construction industry and inheritance. Chile’s stock market makes up around 70 percent of the gross domestic product (GDP) of the country. Comparatively, it is 68 percent for Brazil and 32 percent for Mexico.

After the announcement, the benchmark S&P IPSA index fell 3.9 percent, which was the worst daily performance in four months. The pension bill was presented in the same week that a commission in the lower house is scheduled to discuss a fourth round of early pension withdrawals.

Currently, the government is looking forward to weakening support after the latest drawdown, especially as it already faces stiff opposition in the Senate. The prior three withdrawals allowed the citizens to access their pension savings account during the Covid-19 pandemic where $49 billion was injected into the economy.

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Recently, the carrier’s bankruptcy protection was extended till late September, according to media reports.

A LATAM spokesperson told the media, “The extension request is a common alternative contemplated within the process and does not modify the intention of the LATAM group to exit Chapter 11 by the end of this year.”

Earlier this year, the carrier also cancelled the order for four Boeing 787 and one B777F aircraft. LATAM has rejected the leasing contracts of up to 42 planes.

LATAM airlines said, “On April 29, LATAM and Boeing came to an agreement regarding the acquisition of some B787 and B777 aircraft”.

“As a result of the amendments, LATAM will maintain its purchase orders in respect of two B787-9 aircraft, with proposed delivery dates in December 2021. These arrangements contemplate that LATAM will have no further liability with regards to the terminated aircraft orders.”

During the first quarter of 2021, the carrier had an income of $913.2 million, which is a decrease of 61.2 percent when compared to the previous year. The decrease in income for the carrier is mostly due to the impact of the Covid-19 pandemic on the aviation sector. It posted a net loss of $430.9 million.

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Alvin Tan, minister of trade and State for trade and industry said that this agreement will let businesses from both countries have access to market opportunities and it will also help foster greater cooperation in sectors such as e-commerce, customs, trade facilitation, and maritime services.

In a webinar hosted by the Lee Kuan Yew School of Public Policy, Tan told the media, “I am pleased to share that our chief negotiators are preparing the agreement for signature by the end of this year. This FTA will send a powerful message to the global community that our countries remain open for business and that despite pressures placed on economic multilateralism, we want to reach out to one another and create opportunities for our people.”

Back in 2019, Singapore’s total trade in goods with the PA stood at $6.1 billion and it accounted for 33.2 percent of the country’s total merchandise trade with Latin America. In 2018, trades in services amounted to $2.6 billion and brought in 28.2 percent of Singapore’s total trade services in the region.

The latest FTA will make Singapore the first associate state of the alliance. The PA was formed back in 2012 and Singapore became an Observer State to the PA in 2014 and a Candidate Associate State in 2017.

Apart from the latest trade deal, Singapore already has existing agreements with three of the four PA countries – Chile, Mexico, and Peru, and they are also members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

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LATAM airlines said, “On April 29, LATAM and Boeing came to an agreement regarding the acquisition of some B787 and B777 aircraft”.

“As a result of the amendments, LATAM will maintain its purchase orders in respect of two B787-9 aircraft, with proposed delivery dates in December 2021. These arrangements contemplate that LATAM will have no further liability with regards to the terminated aircraft orders.”

LATAM has trimmed its fleet to a great extend last year. By year ending 2019, the carrier had a total fleet of 342 aircraft, however, now it has been reduced to 297.

Recently, the carrier also revealed its financials for the first quarter of 2021. During the period, the carrier had an income of $913.2 million, which is a decrease of 61.2 percent when compared to the previous year. The decrease in income for the carrier is mostly due to the impact of the Covid-19 pandemic on the aviation sector. It posted net loss of $430.9 million.

Earlier this month, LATAM announced a sustainability programme that will last the next three decades. Through the sustainability programme, the carrier plans to ditch single-use plastics by 2023, stop landfill waste by 2027, and become carbon neutral by 2050.

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The announced tender is expected to award a sum of $30 million in financing to one or more projects that will install more than 10 MW of renewable energy generation capacity for the production of hydrogen before the end of 2025.

Tender documents state that Corfo’s total budget is said to allocate $50 million to be spent during the start of 2022. The financing can be accessed by local and international players all alike. The contest was a part of the strategy of the Chilean government to turn the country into a world-class hydrogen producer and an exporter of the same by 2040. The primary step is to install the initial capacity aimed at satisfying the local demand, especially from the refineries and mining industries by the year 2025.

During the previous phase, Corfo meant to test the industry’s interest in developing hydrogen projects. The state agency had received information of 18 projects for an estimated total investment of $12 billion in the Atacama and Antofagasta regions of northern Chile. To apply, the participants need not have taken part in the previous consultation phases.

Chile is said to attract hydrogen projects in large numbers because of the abundant nature of its wind and solar resources along with the already existing demand in the form of a developed mining industry. Additionally, the export potential to Asia via the Pacific Ocean is also considered significant for the growing hydrogen projects development in Chile.

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Juan Esteban Musalem, president of the Chilean-Chinese Chamber of Commerce, Industry and Tourism addressed the media and said, “Starting in February of this year, Chile has managed to structure a vaccination program with very positive characteristics, in which CoronaVac vaccines, in particular, manufactured by China’s Sinovac Biotech has played a leading role.” He also added that China and Chile have established channels of health collaboration, reflecting their remarkable political and economic ties between the two countries.

It is to note that Chile has thus far administered over 11 million vaccination of which 10 million were manufactured by Sinovac and the remainder by Pfizer and BioNTech. The Andean nation has a population of around 20 million. Currently, 13 million vaccines have already been delivered to Chile with several shipments pending. Above the existing agreement of understanding, the nation will receive 20 million doses of vaccines annually over the next three years from China.

The Sinovac vaccine is known to have played a vital role in the vaccination campaign of the country where 94 percent population in the vaccinated category have received it. It is favoured among other available vaccines because of the supply and logistics of its storage. Recently, Chile also approved the emergency usage of Ad5-nCoV or Convidicea, the vaccine developed by China’s CanSino Biologics.

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The aid package is expected to consist of a $693 bonus for workers who have salaries up to $2,079 since 2019. The aid package is planned to gradually reduce for those having a higher income. The announcement comes following the Santiago international airport shut for a month and the curfew in the country has been increased by an hour. The new measures confine 16 million people under quarantine out of a total population of 18 million.

Assistance is also provided for prisoners and people with disabilities. They are to receive an additional aid of $140 and a 20 percent increase for Emergency Family Income (IFE) for people under phase one or two of the lockdown.

Sebastián Piñera, President of Chile had denied the claims by health experts that the government has eased down on its sanitary efforts. He stated that “a regrowth, a re-attack of the coronavirus throughout the world.” He further added “It is not something that only happens in Chile. We all know that new variants have emerged, new mutations of the virus, many of them are more contagious and cause more risks to the health of compatriots and the inhabitants of the whole world.”

Though Chile is considered to have a strong vaccination campaign, it has reported a total of 1,032,612 Covid-19 cases. This has also led to postponing the elections from April 11 and 12 until May 15 and 16. Health authorities reported that about 6,940,748 had received the first dose of vaccination earlier this week and about 3,846,294 have completed two doses.

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