AGP Executive Report

Mining & Investment: Chile-focused copper developer Tintina Mines secured C$91m for its Domeyko Sulfuros copper-gold project, backed by Sumitomo and the Gignac family, signaling renewed appetite for Chilean supply as the market tightens. Energy Transition: Acciona Energía will add a 196 MW/980 MWh battery at its El Romero solar plant in Chile’s Atacama, aiming for operation by end-2027 and boosting grid flexibility. Water & Industry: On World Oceans Day, Chile’s new rules for seawater desalination highlight the push to secure water for drought-hit sectors like mining—while raising questions about impacts on marine ecosystems. Air Quality & Health: Chile’s Medical Association is set to weigh the health effects of environmental decrees canceled by the Comptroller, focusing on PM2.5 and coal-related measures. Macroeconomy: Chile’s CPI rose 0.2% in May, taking annual inflation to 3.9%, with housing and transport driving the increase. Corporate Moves: CCU bought Nestlé’s 49.9% stake in their Chile water joint venture, keeping distribution of Nestlé’s brands under CCU ownership.

AI & Water Stress: A new study estimates that writing a 100-word email with ChatGPT can consume about 519 ml of water, factoring both server cooling and power generation—raising alarms as AI data centres scale in water-stressed regions. Energy & Industry Deals: Vinci’s Geoquest signed an agreement to buy Grupo TDM’s geosynthetics division, expanding ground engineering and waterproofing capacity across Peru, Brazil, Argentina, Chile, Colombia and Mexico. Chile & Infrastructure: Chile’s Atacama astronomy community warns that light pollution is rising from cities, mining and new energy infrastructure, threatening some of the world’s darkest skies. Mining & Commodities: Rare earth supply risk remains high as China dominates processing; governments and firms are accelerating diversification ahead of export-control changes. Transport & Costs: Public transit ridership is climbing in multiple countries as fuel prices stay high, with research linking higher gas costs to increased transit demand. Food & Tourism: Chile’s winter wine push gets a boost from Brazilian visitors via ski-linked urban tastings. Regional Politics: Palestinians in Chile are pushing back over the new president’s pivot toward Israel, highlighting local community concerns.

Mining & Markets: BHP shares fell 2.5% as iron ore weakness and broader commodity jitters hit sentiment, despite solid recent operations—investors remain focused on near-term demand risks tied to China and industrial activity. Energy & Power: A new report frames wind as a strategic energy-security tool, not just a climate fix, arguing it can reduce exposure to fuel disruptions and improve resilience. Copper Outlook: Analysts warn the 2026 copper balance may flip into a structural deficit, driven by AI data-center power needs colliding with a tight supply pipeline. Chile Water Stress: A Guardian report spotlights Santiago’s Quilicura wetland drying amid the data-center boom, raising alarms about water extraction in a megadrought region. Environment & Industry: Chile’s Atacama astronomy sites face rising light pollution from cities, mining and new energy infrastructure, threatening one of the world’s darkest skies. Aviation & Inclusion: IATA named LATAM Airlines Group as its Diversity & Inclusion Team winner, highlighting ongoing workforce and culture shifts in the airline sector.

Data & Water Stress: Chile’s megadrought is now colliding with the data center boom, with activists pointing to the Quilicura wetland near Santiago drying up as server farms expand and water extraction rights come under scrutiny. Aviation & Connectivity: JetSMART says July demand is building steadily after strong first-half traffic, while fuel costs remain a key constraint shaping which routes it can profitably serve across Chile and the region. Mining & Power Demand: Copper is getting pulled into the AI energy race, with analysts warning that AI data centers could drive a structural supply deficit by 2026 and reshape mining stock risk. Energy Transition Metals: Peru moves to treat lithium and uranium as “national pillars,” a regulatory shift that could accelerate extraction plans in the Macusani Plateau’s dual-commodity geology. Regional Politics Watch: Peru’s tight presidential runoff pits Keiko Fujimori against Roberto Sanchez, with crime and market jitters central as Chile and other neighbors have recently swung right. Maritime Governance: A report warns foreign fleets fishing near Argentina’s EEZ can take up to four times the catch of the domestic industry, raising pressure on enforcement and marine resources.

Copper Supply Shock: New analysis says the refined copper market could flip into a structural deficit in 2026, with the first major shortfall since 2009 raising input-cost and project-timing pressure—turning copper exposure into a core portfolio risk. Mining & Capital Markets: Separate coverage flags “frontier” lithium plays as the next growth focus as the easy supply era fades, with investors hunting projects that can clear the discovery-to-exploration gap. Chile Policy Watch: Chile’s Kast administration is pushing a broad RED bill with spending cuts and deregulation, triggering resistance over whether fiscal tightening plus corporate tax relief shifts the burden onto lower-income households. AI for Education: Tabuga and Chile’s CENIA are bringing an AI-in-education webinar series to Dominican broadcast TV, aiming to help teachers and school leaders move from basic tool use to classroom and management judgment. Energy Transition Signals: Lithium and EV demand forecasts keep pointing to a tighter balance ahead, while “frontier” jurisdictions gain attention for higher-beta supply growth.

Chile Budget Turmoil: President José Kast’s austerity and spending cuts are sparking resistance, with students in Santiago clashing with police during protests against education-related measures. Bolivia Supply Disruption: In Santa Cruz, road blockades and clashes between protesters and anti-riot police are worsening food and medicine shortages across Bolivia’s agricultural breadbasket. Chile Mining & Capital Markets: Aclara Resources is pushing a rare-earth supply chain that would process output from Brazil and Chile with in-house refining tech, targeting commercial production by 2028. Energy & Industry Watch: Chile’s copper sector remains in focus as investors track new project and corporate moves tied to the broader battery and critical-minerals cycle. Science With Chile Links: ALMA observations from Chile helped confirm a hot wind blowing from the Milky Way’s black hole, a finding that closes a decades-long astronomy mystery. Tourism Demand Shift: A travel ranking highlights Chile’s Patagonia as a top “coolcation” destination for 2026, reflecting growing heat-driven travel changes.

Chile-Linked Space Science: Using Chile’s ALMA and NASA’s Chandra, astronomers report a long-sought “wind” from the Milky Way’s supermassive black hole, Sagittarius A*, seen as a cone-shaped cavity in cold gas—an update that deepens how black holes feed and affect their galaxies. Energy & Storage Strategy: A new analysis argues grid storage planning is becoming a portfolio decision, not a single-technology bet, as lithium-ion remains central while supply-chain risks and newer chemistries reshape choices. Commodities—Copper Watch: Copper’s rally is holding as mine supply struggles, smelters compete for concentrate, and tariff uncertainty shifts demand—keeping the market tight despite worries about demand. Mining—Chile Drilling Update: Norsemont reports new Phase 3 drill results at its Choquelimpie gold-silver-copper project in northern Chile, including intervals averaging 0.97 g/t gold equivalent over 28 meters. Tech in Chile: Classiq and UC Chile launch a 12-month quantum-AI research project for biomedical image analysis, targeting renal pathology using quantum-classical methods. Public Health & Travel Risk: Ebola in the DRC is driving border closures and screenings, with knock-on effects for global workforces and logistics.

Rare-Earth Supply Chain: Aclara Resources says it will build a rare-earth processing chain using in-house tech, targeting commercial output in Brazil and Chile by 2028 to supply EV battery materials and reduce reliance on China. Trade & Industry Pressure: OECD findings are sparking a public fight with China over alleged industrial subsidies tied to overcapacity, with spillovers for global manufacturing and supply chains. Mobility Tech in Chile: Indra Group is showcasing connected-car, rail and public transport ticketing systems in Santiago, including payment and operations upgrades already used in cities like Santiago. Quantum-Health Collaboration: Classiq and UC Chile launched a 12-month quantum-AI project for biomedical imaging and renal pathology, using NVIDIA CUDA-Q to push quantum-classical computing in Latin America. Mining Update: Norsemont reported new Phase 3 drill results at its Choquelimpie gold-silver-copper project in northern Chile, including 20 meters at 1.20 g/t gold equivalent. Legal & Media Rights: A Chilean court ordered Amazon Prime Video to pay about $7.3m to Chileactores for unpaid royalties tied to Chilean performers’ streaming content. Salmon Trade Risk: Chilean salmon producers are seeking refunds after U.S. tariff moves, warning the 10% duties are hitting the key market. EV Battery Materials: The push to refine South American EV battery inputs with U.S. technology is gaining momentum as companies try to diversify critical mineral routes.

Copper Market Watch: Analysts say 2026 copper is shifting from “looming shortage” to an operational constraint, with debate over whether a small surplus (~160 kt) or a tighter structural deficit will dominate, and risks tied to disruptions and Chile’s sulfuric acid bottleneck. Legal & Media Rights: A Chilean court ordered Amazon Prime Video to pay about $7.3M to Chileactores for unpaid performer royalties, a milestone for digital copyright enforcement. Energy & Gas: TotalEnergies plans to lift Argentina gas output across offshore and Vaca Muerta to expand regional sales, including via pipeline links to Chile and Uruguay. Mining & Community Resistance: Penco and Lirquén are set to mobilize against a rare earth project ahead of a key Biobío environmental vote, with critics alleging political pressure to approve before key reports. Chile Tech & Research: Classiq and UC Chile launched a 12-month quantum AI project for biomedical image analysis using NVIDIA CUDA-Q, targeting renal pathology. Food Prices: Chicken prices are rising as supply can’t keep up with demand, adding pressure to staple protein costs.

Port Expansion Watch: Chile has approved the $4.45B expansion of the Port of San Antonio, aiming to triple cargo capacity to 6 million 20-foot containers a year, with a new breakwater and terminals; bidding is underway and construction is set for 2027. Copper Leadership: Codelco named Jorge Gomez as its new CEO, replacing Ruben Alvarado as the state miner responds to fallout from production reporting issues. Mining Investment: Montero Mining says drilling has started at its Elvira Gold Project in Chile, targeting gold and deeper porphyry Cu-Au zones. Renewables for Mining: BHP signed long-term deals with Sungrow for 195 MW of solar plus 960 MWh of battery storage at Escondida and Spence, targeting 100% renewable power from fiscal 2029. Food Security & Trade: Chile is pushing deeper cooperation with Malaysia on food security and innovation after the Chile-ASEAN Business Summit 2026. Green Hydrogen in the Region: Enaex Perú’s Cachimayo plant is producing green hydrogen for carbon-neutral ammonium nitrate used in mining explosives.

Copper & State Industry: Chile’s Codelco is set to name Jorge Gomez as its new CEO on July 13, replacing Ruben Alvarado, as the company responds to fallout from “improper reporting” of 2025 production figures and a broader reshaping under President Jose Antonio Kast. Mining & Trade Signals: Copper prices hover near record highs but remain sensitive to tariff uncertainty, while Chile’s weak April output (its lowest in 23 years) adds pressure on supply. Energy & Renewables: Sany Renewable Energy shipped the main turbine package for its first collaborative wind project in Chile, with installation and commissioning to follow. Agri-Food Exports: Chile’s Hass avocado season ended at 265,000 tons—best in 15 years—with exports mainly to Europe; the sector credits better farming and technology. Sustainability & Waste: La Paz (Mexico) is using a Chile-based model for organic waste management via home composting, with Chile’s Geociclos involved. Tech & Payments: Visa, Mastercard and Stripe are reportedly backing a shared stablecoin platform to expand faster settlement infrastructure. Science & Research: Chile-linked observations helped astronomers directly measure magnetic fields on exoplanets, a step toward understanding planetary habitability.

Codelco Leadership Shake-Up: Sources say Jorge Gomez is set to become Codelco’s new CEO on Wednesday, replacing Ruben Alvarado, as the state copper giant responds to a scandal tied to inflated production figures and the Kast administration reshapes the company’s board. Deep-Sea Mining Warning: Scientists warn that deep-sea mining in the Clarion-Clipperton Zone could cause persistent, possibly irreversible ecosystem damage, with decades-long scars from past tests and long-lasting sediment plumes. Chile Energy & Renewables: Sany shipped the main turbine package for its first Chile wind project, while Finning highlighted sustainability progress in its 2025 report, including Chile-focused workforce targets. Copper Market Pressure: Chile’s copper output fell sharply in April, adding to supply concerns as prices hit record levels and sulphuric acid tightness raises processing costs. Food & Labeling Debate: A new push for bold front-of-pack warning labels is framed as a health tool, but agro-processors and farmers warn it could hit everyday agricultural products. Global Trade Links: LATAM launched a Brussels–São Paulo direct route, boosting passenger and cargo access to South America, including Chile.

Mining & Indigenous Rights: Chile’s Second Environmental Tribunal struck down key parts of Collahuasi’s $3.2B expansion approval, citing gaps in how Indigenous concerns and marine impacts were assessed, sending the review back for further analysis. Copper Market Watch: Copper hit record levels in May as supply shocks persist; Chile’s April output fell 13.8% year-on-year, while analysts flag a potential 520,000t deficit this year and note sulphuric acid tightness as a processing risk. Renewables & Grid Limits: Atlas Renewable Energy (BlackRock-backed) paused $1B in Brazil investments after repeated renewable curtailment, a problem also affecting Chile and other markets. Logistics for Mining: LATAM Cargo launched a weekly Frankfurt–Antofagasta freighter link aimed at northern Chile mining demand, with limited dedicated capacity. Food Industry Policy: Chile’s black warning labels cut sugary drink purchases by nearly a quarter overall, but a new review finds the effect largely fades for low-income shoppers. Chile Energy Projects: Grenergy signed a 12-year hybrid PPA for Oasis de Atacama phase in Chile, adding to the country’s solar-plus-storage buildout.

Mining & Logistics: LATAM Cargo launched a new weekly Frankfurt–Antofagasta freighter link (Boeing 767) aimed at northern Chile’s mining demand, with limited dedicated capacity and added coverage for spare parts plus automotive and pharma. Renewables & Grid Buildout: Zelestra completed a USD 1.1bn sale of its Latin America renewable platform to Promigas, transferring about 3,500 MW across Chile, Peru and Colombia, with Zelestra’s EPC arm continuing work in both Chile and Peru. Energy Storage: The sodium-ion battery race is heating up, with new assessments highlighting progress toward commercial reliability—relevant for lithium-producing nations watching demand shifts. Copper Pulse: Chile’s copper output weakness in April is feeding supply-tightening concerns as copper prices rise, while Codelco signals a shift toward profitability over volume. Ports & Trade: Hong Kong Q1 2026 port cargo throughput rose 2.2% year-on-year, but Chile inbound volumes fell sharply, underscoring uneven trade flows. Chile Industry Watch: ExGen appointed Dr. Cynthia Li to its board as it advances Chile-linked mining plans. Food Systems: Chilean municipalities are coordinating organic waste management through a regional push for clearer rules and scalable collection.

Renewables & Storage: Grenergy signed a 12-year hybrid PPA for Oasis de Atacama in Chile, pairing solar with battery storage to extend clean power beyond daylight, as the company pushes its Oasis platform expansion through 2028. Mining & Inputs: AISC costs are resetting higher across mining, with sulphuric acid shortages cited as a key driver of rising costs—an issue that matters for Chile’s copper value chain. Copper Demand Signal: A report links copper’s strength to AI-driven data center buildouts, while Chile’s supply outlook faces pressure from cost cuts and operational headwinds. Chile Security & Trade Routes: Chile warned organized crime is shifting maritime trafficking routes through the Strait of Magellan as enforcement tightens elsewhere. Aquaculture Results: Chilean salmon producer Multi X posted a Q1 net loss, blaming lower prices, higher supply, and U.S. import tariffs. Health Tech: C2N Diagnostics and SouthGenetics expanded access across Latin America and the Caribbean to blood tests for Alzheimer’s amyloid pathology, starting with Chile among other markets. Water Stress: A global groundwater study flags steep declines in Chile’s aquifers, raising risks for farming and community water access.

Renewables & Storage Dealmaking: Grenergy signed a 12-year hybrid PPA for phase five of Oasis de Atacama in Chile, covering 350 GWh annually from January 2028, with operations starting Q3 2027; the Oasis platform is now positioned as a major Latin America BESS hub. Grid & Permitting Progress: Aclara Resources received a favorable consolidated evaluation report from Chile’s environmental authority for its Penco Module ionic clay project, moving it toward final authorization. BESS Supply Chain Push: Sungrow and Sonnedix agreed on a Chile BESS supply arrangement (643.8 MWh), adding to a busy month for solar-plus-storage projects across the country. Mining & Copper Economics: Codelco reported sharply higher Q1 2026 profits despite lower output, highlighting how copper prices are cushioning operational strain. Agri-Exports: Chile’s avocado season closed at 265,000 tons in 2025/26, up 10%, with 61% shipped abroad and Europe still the biggest destination. Maritime Security: Chile warned organized crime is shifting to new routes through the Strait of Magellan to move contraband and evade enforcement. Logistics & Ports: SAAM moved to full control of Intertug via a US$30.5M investment, strengthening towage services across Latin America.