Latest situation in Chile August 2023

According to the regular report of economy (August 2023) and the regular report of politics (August 2023) published by the embassy of Japan in Chile, the latest situation of the country can be summarized as below.:

①Lithium

Recently, the Chilean government is promoting the establishment of state-owned lithium company (strengthening public-private collaboration), but a local newspaper reported results of a study: if the privatization of lithium development is maintained, Chile’s lithium (mainly lithium carbonate) production would triple.
Lithium’s contribution to public finances is said to depend on the mineral’s long-term price, but under the National Lithium Strategy, it is said that production and tax revenue levels are “more uncertain”. Now, a decision has to be made: whether they maintain privatization or keep the national strategy.
Additionally, since changes in Chilean cabinet (including the ministry of mines) were announced in August, it seems to be vital to pay close attention to the future tendency.

②Economics

The economic activity index in July recorded 1.8%. In the mining section recorded 2.9%.
The mining production index in the same month was 0.6%, and copper production rose by 0.9%.
The export amount in August was 7.90 billion dollars (-1.2%), of which mining products raised 4.56 billion dollars (3.6%, 57.5% of the total), of which copper raised 3.70 billion dollars (8.3%, 81.3% of the total mining export value).
On the other hand, import value in the same month was $7.35 billion (-18.0%), and the trade balance was a surplus of $590 million.
*Percentages from the same month of the previous year

The amount of trade with China, Japan, and South Korea (July) resulted as below:
With China: exportation 2.94 billion (-4.3%), importation 1.58 billion (-22.1%), total amount of trade 4.52 billion (-11.4%)
With Japan: exportation 490 million (13.3%), importation 130 million (-45.6%), total amount of trade 620 million (-8.0%)
With South Korea: exportation 440 million (-16.3%), importation 110 million (-8.3%), total amount of trade 550 million (-14.9%)
*Dollars, comparing to the same month of the previous year

References：The regular report of economy (August 2023), from the Embassy of Japan in Chile, Department of Economy.
The regular report of politics (August 2023), from the Embassy of Japan in Chile
(The original reports are written in Japanese.)
https://www.gob.cl/noticias/presidente-boric-da-conocer-creacion-de-empresa-nacional-del-litio/