AGP Executive Report

Chile Cabinet Shake-Up: President José Antonio Kast carried out his first cabinet reshuffle, removing Security Minister Trinidad Steinert and government spokesperson Mara Sedini, with Interior Minister Claudio Alvarado taking on spokesperson duties while Martín Arrau moves to Security—an unusually fast adjustment amid slipping approval. Mining & Environment: Chile’s appeals court confirmed a heavy sanction against Minera Pacífico del Sur over heavy-metal pollution tied to the El Toqui operation in Alto Mañihuales, ordering more than 12 billion pesos for environmental closure guarantees. Foreign Policy & Trade: Chile’s foreign minister pushed deeper ties with India, highlighting services and digital cooperation alongside critical minerals and CEPA talks. Gold Project Funding: ASX-listed Flagship Minerals raised A$2.75m via a placement backed by strategic investors including Xinhai to advance feasibility and drilling for Chile’s Isidora Gold Project. Regional Climate Pressure: A WMO report warns Latin America and the Caribbean are already seeing harsher extremes—heat, storms, droughts and floods—despite improving early-warning systems.

Bolivia Under Siege: Protests and road blockades are choking La Paz and draining hospital oxygen, with clashes between supporters of ousted leader Evo Morales and police escalating as unions, peasants and miners demand President Rodrigo Paz’s resignation. Latin America Politics Watch: The unrest lands as the region’s right-wing shift gathers steam—Colombia’s May 31 election could decide whether the pro-Israel trend keeps spreading or stalls. Chile Business Signals: Chilean salmon producer Salmones Camanchaca reported a Q1 net loss of $3.8m, blaming lower prices, higher processing costs and extraordinary mortalities. Chile Tech & Connectivity: Mundo topped Chile’s fixed internet speed ranking (nPerf), averaging 564.2 Mbps. Energy & Industry: South Africa’s green hydrogen-ammonia project advanced with engineering work underway, while ENGIE Chile energized its wind-plus-battery system, adding flexibility to the grid. Global Health: A hantavirus outbreak linked to a cruise ship continues to trigger quarantines and disinfection in Rotterdam, with WHO saying broader risk remains low.

Courtroom Battle: Chilean construction firm’s bid to enforce a $140M arbitral award against Italian Webuild is back on track after the U.S. 3rd Circuit revived the case, rejecting a lower court’s jurisdiction move. Justice & Safety: A Chilean executive, Germán Naranjo Maldini, was detained in Brazil over racist and homophobic slurs toward a LATAM flight attendant, after a viral video of “monkey” gestures and insults. Energy Transition: ENGIE Chile energized its first BESS + wind setup at Kallpa, adding battery storage to support the grid. Public Health Watch: A hantavirus outbreak linked to a cruise ship has reached Rotterdam, where authorities are disembarking crew and starting disinfection. Climate Pressure: A new regional climate report warns Latin America and the Caribbean face worsening heat, floods, and food insecurity, with health systems under strain.

Caribbean Airlift Push: Jamaica will host the second Caribbean Tourism Organization Air Connectivity Summit in Kingston on Feb. 23, 2027, aiming to unlock more routes and seats as regional tourism faces higher costs and persistent airlift gaps. Hantavirus at Sea, Chile in the Spotlight: The MV Hondius reached Rotterdam for disinfection and quarantine after an Andes hantavirus outbreak linked to the ship; meanwhile, Argentina, Chile and Uruguay are trading blame over where the virus started, with Ushuaia’s tourism economy worried about reputational damage. Collahuasi Court Shock: A Chilean court ruling set aside part of Collahuasi’s environmental authorization tied to its desalination plant, forcing Anglo American and Glencore to seek clarification while saying production impact is not expected immediately. Chile Health Tech: Faex Health launched a clinical trial with Hospital Dr. Sótero del Río testing smartphone stool analysis to flag higher-risk patients awaiting colonoscopies. Energy Transition in Chile: Engie inaugurated BESS Kallpa, a 57 MW / 285 MWh battery storage system directly connected to its Kallpa wind farm in Taltal.

AI & Telecom Showcase: ZTE used GSMA M360 LATAM to push its “AI & network two-way integration” pitch, aiming to move operators from pure connectivity to “digital economy enablers.” Copper Outlook: A fresh bullish take argues copper’s electrification + AI data-center demand could keep BHP shareholders smiling over the next five years. Hantavirus Alert: A cruise-linked hantavirus outbreak remains “low risk” in Southern Africa, but Rotterdam is preparing for the MV Hondius arrival with disinfection and coordinated crew handling. Bolivia Unrest: Bolivia deployed thousands of troops to reopen La Paz supply routes amid blockades tied to a worsening economic crisis; dozens were detained and deaths were reported from disrupted access to care. Regional Security: Panama is gearing up for Panamax 2026, a major canal-defense drill that includes Chile and other partners. Chile-India Trade Push: Chile’s FM visit to India accelerates CEPA talks and critical-minerals cooperation. Chile Business Angle: Chilean power and telecom investment themes also surfaced, alongside broader investor watchlists.

Chile-India push on trade and critical minerals: Chile’s Foreign Minister Francisco Pérez Mackenna’s visit to India is accelerating CEPA talks, with both sides urging negotiators to speed up a “balanced and forward-looking” deal and deepen cooperation on critical minerals, alongside meetings with Indian commerce and external affairs leaders and a business delegation tour including Bengaluru’s innovation ecosystem. Regional security spending: SIPRI data shows Brazil remains South America’s top defense spender, while Uruguay’s military budget jumped nearly 80% over five years—part of a wider global rise in re-equipment and modernization. Bolivia unrest spills into the streets: Bolivia detained 57 people amid clashes tied to economic hardship, with blockades disrupting hospital access and neighboring countries issuing concern over violence. Global business backdrop: India’s auto exports surged 38% in April as firms lean on overseas demand, while UNESCO flagged higher-education growth pressures worldwide. Chile angle, softer today: Chilean seed producers are pressing for water security, phytosanitary protection, and regulatory modernization to stay competitive.

Chile-India Trade Push: Chile’s FM Francisco Perez Mackenna wrapped a four-day visit to India with both sides agreeing to accelerate CEPA talks, deepen cooperation on critical minerals, and expand investment links—backed by meetings with Jaishankar and Commerce Minister Piyush Goyal and a Chilean business delegation. Water & Cost Pressure: In Malawi, civil groups are challenging a proposed 45% water tariff hike, warning it will punish households without fixing service and governance problems. Bolivia Unrest: Bolivia’s government struck a deal with some protesting miners, but blockades and clashes continued around La Paz, keeping pressure on President Rodrigo Paz. Commodities Watch: Lithium sentiment improved as battery-grade prices recovered sharply in mid-2026, with analysts pointing to demand from EV supply chains and battery storage growth. Health Security: A hantavirus cruise-ship outbreak is still driving global concern about preparedness and misinformation, even as experts stress the wider pandemic risk remains low.

Chile–China Soft Power: A Santiago symposium launched the Spanish edition of essays on Xi Jinping’s economic thought, with scholars linking China’s development philosophy to new cooperation paths for countries like Chile. CEPA Push: Chile’s Foreign Minister Francisco Perez Mackenna’s India trip is now feeding concrete talks on CEPA, plus critical minerals and investment, after meetings with Jaishankar and Piyush Goyal. Bolivia Unrest Spillover: In La Paz, a government deal with some protesting miners hasn’t ended road blockades, keeping pressure on the Paz administration. Energy & Industry Theme: A fresh debate is building around how geopolitical shocks are accelerating the renewables race—while Europe’s energy costs keep squeezing industry. Copper Watch: Analysts are again pointing to sulphuric acid constraints as a key risk to the 2026 copper outlook. Public Health Alert: The Andes hantavirus cruise-ship outbreak continues to drive global concern, even as experts stress the pandemic risk remains low with proper controls.

Bolivia Humanitarian Airlift: Bolivian President Rodrigo Paz publicly thanked Argentina’s Javier Milei for sending two C-130 Hercules aircraft to help deliver food to La Paz and El Alto after 10 straight days of road blockades. Public Health Watch: A hantavirus outbreak tied to an Atlantic cruise ship is driving fresh global scrutiny, with experts stressing the pandemic risk looks low but preparedness and misinformation control are now front and center. Security & Justice: A suspected Tren de Aragua leader was extradited from Colombia to the U.S. to face terrorism and drug trafficking charges, underscoring Washington’s widening crackdown on the gang. Chile Labor Signals: A new study says Venezuelans’ participation in Chile’s labor market has fallen for five straight months, linked to tougher immigration policies and Venezuela’s political shifts. Copper Momentum: Copper prices are near record highs on expectations of AI-driven demand and supply constraints, keeping Chile’s mining outlook in focus.

Codelco Shake-Up: Chile’s government named Bernardo Fontaine to replace Maximo Pacheco as Codelco chair, with a “special mandate” for an external audit after production and debt concerns—following reports that nearly 20,000 tons of copper may have been improperly included in a 2025 figure. Energy & Industry: Atamostec has started real-world testing in Chile’s Atacama for low-silver heterojunction solar panels, aiming to cut costs by swapping silver with copper. Green Finance: STM secured a US$630m green bond issuance to back power transmission. Trade & Diplomacy: Chile’s foreign minister said restoring consular services with Venezuela is a priority, as the countries still lack direct administrative channels. Global Watch: WHO says the Pandemic Agreement still needs another year, while a hantavirus cruise outbreak keeps public attention high. Markets: Copper pushed past US$14,000/t amid tightening supply narratives, even as investors watch policy signals.

Codelco Shake-Up: Chile named Bernardo Fontaine as the new chair of copper giant Codelco, with a “special mandate” to investigate production and debt concerns as the Kast administration questions overruns and output. Diplomatic Reset: Chile is pushing to restore consular services with Venezuela, citing the lack of official channels for hundreds of thousands affected by the 2024 rupture. Aviation Tech Push: ERA won a contract to deliver ADS-B surveillance for Colombia’s Palonegro airport—its 73rd country—signaling continued regional expansion. Crypto Payments Expansion: Oobit, backed by Tether, launched in Colombia, citing strong stablecoin use and enabling wallet-to-Visa spending across 150M merchants. Public Health Watch: The Andes hantavirus cruise outbreak keeps spreading across countries, with WHO reporting 11 confirmed/probable cases and ongoing quarantines. Business & Culture: Similarweb begins a CEO transition after 20 years while reporting Q1 growth; and Chile’s presence shows up in global sports and trade coverage, from World Cup stadium guides to Chile-linked industry events.

Public Health Shock: The Andes hantavirus outbreak tied to the MV Hondius cruise ship has now reached 11 confirmed or probable cases, with officials stressing transmission risk is low but fear is spreading fast—an echo of COVID-era distrust. Telecom Watch: Telefonica reiterated its outlook after a solid Q1, with revenue up slightly and net loss narrowing, as it continues focusing on core markets after South America exits. Chile Energy & Trade Context: At a regional geopolitics congress in Santo Domingo, leaders warned that conflicts are pushing up energy and food costs unevenly across Latin America—Chile among the importers feeling the squeeze. Chile Business Signals: Chile’s table grape exporters say US demand stayed steady despite a smaller 2025/26 crop, while Chilean lithium and gold stories kept investors’ attention on new project milestones and studies. Tech & Capital: South Summit Madrid 2026 is set to spotlight AI and defense tech, with major startup and investor participation.

Chile-India Trade Push: Chile’s foreign minister Francisco Mackenna met India’s commerce chief Piyush Goyal in New Delhi to speed up CEPA talks, with both sides also discussing trade facilitation, investment and sectors like critical minerals, renewables, pharma and digital services. Mining & Capital Markets: Flagship Minerals flagged a major step forward in northern Chile, filing a 2.1-million-ounce JORC resource at its Isidora Norte gold porphyry project, while Red Metal Resources moved to end US reporting obligations via a Form 15F. Energy & Industry: Grenergy secured $268m financing for solar-plus-storage in Chile, reinforcing the country’s push to stabilize power for mining. Food & Agriculture: Chilean-linked supply chains stayed busy as India and Chile reviewed trade progress, and Chile’s broader agri momentum continued with new planting season coverage. Global Watch: Antarctic krill fishing tensions rose as China and Norway seek higher harvests, while NGOs warn of ecosystem pressure.

CEPA Push: Chile’s Foreign Minister Francisco Pérez Mackenna met India’s commerce leadership in New Delhi to accelerate the India–Chile Comprehensive Economic Partnership Agreement (CEPA), with talks focused on trade facilitation, market access, investment promotion, and early deal timing. Environment Under Pressure: Near Santiago, the Tiltil landfill is being flagged as a major methane source—UN data points to a growing health and pollution burden for nearby residents. Copper Momentum: Great Southern Copper has started scout reverse-circulation drilling at Artemisa North, targeting a porphyry system after nearby results showed strong alteration. Digital Security: Android’s 2026 update roadmap adds protections aimed at scams, including “verified financial calls” to cut spoofed bank phone fraud. Global Watch: India and Russia are in advanced talks on a preliminary critical-minerals pact covering lithium and rare earths, potentially opening new supply routes.

Tobacco Crackdown Backfires: A new KPMG report warns that heavy-handed cigarette taxes and rules across 11 markets—including Chile—are shrinking legal sales while boosting illicit consumption, with non-domestic inflows largely driven by illegal cigarettes. Trade & Payments: XTransfer is rolling out its X-Net cross-border settlement network across Latin America, aiming to cut FX friction and compliance headaches for SMEs, with Chile flagged for deeper expansion. Chile Energy Push: Grenergy secured $268m in non-recourse financing for its Monte Águila solar-plus-storage project in Chile (342MW/1,034MWh), part of its Central Oasis platform. Global Markets: Copper keeps climbing toward record levels as supply tightness outweighs recession fears. Health Watch: The hantavirus cruise outbreak continues to spread across countries, with WHO/CDC stressing risk remains limited if precautions hold.

Solar-Storage Financing in Chile: Grenergy just locked in about US$268m of senior non-recourse funding for its Monte Águila hybrid project, adding 342MW of solar plus 1.03GWh of storage under the Central Oasis platform, with the wider buildout targeting operation in 2026-2027. Trade Talks with India-Chile: In New Delhi, Chile’s foreign minister met Piyush Goyal to review progress on the India-Chile CEPA, with both sides pointing to critical minerals as the key to unlocking a broader deal. Energy Market Pressure: Mexico’s tight power capacity is keeping prices elevated, and analysts say batteries will matter more—though rules for how storage gets paid remain uncertain. Global Risk Watch: A hantavirus outbreak tied to a cruise ship continues to drive monitoring and repatriation efforts across countries, while health agencies stress the overall risk is still limited with precautions. Local Business Pulse: Chilean-linked coverage also highlights how neighborhood demand can rebound unevenly—one strip outpacing others—showing how local foot traffic and programming shape recovery.