AGP Executive Report

Crypto Crime Crackdown: Chile arrested 18 people in an $88M crypto money-laundering ring tied to the Tren de Aragua gang, with alleged help from a Banco Santander recovery executive and the freezing of 140 accounts. Politics & Memory: Chile’s far-right is pushing a “Museum of Truth” focused on the Allende era and the 1973 coup, aiming to challenge the existing Museum of Memory narrative. Climate Watch: World Environment Day highlighted the urgency of cutting emissions and adapting to extreme heat as El Niño conditions strengthen. Trade & Tariffs: The US is moving ahead with Section 301 forced-labor investigations, proposing new tariffs that could hit most US import sources, with Chile and Brazil among the broader pressure points. Tech & Research: Classiq and UC Chile launched a 12-month quantum-AI project for biomedical image analysis, targeting renal pathology. Mobility Payments: Indra showcased transit ticketing and connected mobility tools, including systems already deployed in Santiago. Regional Finance: A report says USDT dominates stablecoin volumes across Latam, with Chile and Brazil near 90% share.

Chile–US Trade Tension: Chilean salmon producers are seeking refunds after last year’s 10% U.S. tariffs hit sales, with producers pointing to pressure on results in the key market. Mining & Energy Deals: BHP and Sungrow signed solar and battery deals for Chile’s copper mines, while Grenergy secured a 12-year hybrid PPA for Oasis de Atacama phase in Chile—both signals of how power and storage are becoming central to mining competitiveness. Copper Outlook: A new market take frames copper as moving from “looming shortage” to an operational constraint, with 2026 supply tightness and Chile-linked bottlenecks (like sulfuric acid) in focus. Tech & Research: Classiq and UC Chile launched a 12-month Quantum-AI project for biomedical imaging, aiming at quantum machine learning for renal pathology. Mobility Tech: Indra Group showcased smart, sustainable mobility and public transport ticketing tech in Santiago de Chile and beyond, including connected-car and rail management solutions. Regulatory/Legal: A Chilean court ordered Amazon to pay actors’ copyright royalties, adding to the country’s growing legal scrutiny of big tech.

Chile Legal & IP: A Santiago court ordered Amazon Prime Video to pay about $7.3m to Chileactores for unpaid streaming royalties tied to Chilean performers, rejecting the “no Chile jurisdiction” argument. Copper Market Watch: New forecasts frame 2026 copper as “structurally tight but operationally constrained,” with debate over whether a small surplus or a real deficit drives prices toward record territory. Rare Earth Politics: Penco and Lirquén residents plan a June 6 mobilization against Aclara Resources’ rare earth project ahead of a June 8 vote, accusing the process of political pressure to accelerate approval. Mining & Energy Deals: BHP and Sungrow signed solar-plus-battery deals for Chile’s copper mines, while TotalEnergies said it will raise gas output in Argentina to feed regional demand, including pipelines to Chile. Business Climate: Chile’s Kast government faces protests over education cuts and austerity, while also pushing tax reductions for business owners. Tech & Research: Classiq and UC Chile launched a 12-month quantum AI project for biomedical image analysis using NVIDIA CUDA-Q. Food & Trade: Chilean salmon is pitched as a reliable summer grilling category, and Chile’s foreign betting platforms are set to pay taxes under a new system. Sports & Culture: LIV Golf’s “LIV 2.0” plan points to more player equity and commercial rights as it reshapes its 2027 schedule.

Port Expansion: Chile has greenlit the $4.45bn expansion of the Port of San Antonio, adding a 2.5-mile breakwater and two new terminals to triple capacity to 6m 20-foot containers a year, with bidding already underway and construction set for 2027. Copper & Markets: Copper prices slipped on rate-hike worries and tariff uncertainty as Chile reported its weakest April output in 23 years, feeding fears of tighter supply. Codelco Leadership: Chile’s state copper giant Codelco named Jorge Gomez as its new CEO, as the market watches for policy and production signals. AI vs Mining Reality Check: Azuria’s Tavi Costa argues the AI buildout is “inflationary” in the near term because it drains power and materials while mine supply deficits persist. Forced Labor Tariffs: The U.S. proposed Section 301 tariffs on 60 economies over forced-labor enforcement failures, explicitly including Chile among the targeted countries. Legal & Media Rights: A Chilean court ordered Amazon to pay about $7.3m to Chile’s actors’ union for unpaid performer rights tied to Prime Video streams. Food Trade Push: Chile is looking to deepen ties with Malaysia on food security and innovation after the Chile-ASEAN Business Summit 2026.

Codelco Leadership: Chile’s state copper giant Codelco named Jorge Gomez as its new CEO, replacing Ruben Alvarado, as the company faces fallout from alleged inflated production figures and a board reshuffle under President Jose Antonio Kast. Protests & Austerity: Thousands of students, teachers and activists clashed with police in Santiago during a march against Kast’s education cuts and austerity plan, with demonstrators also targeting a broader “National Reconstruction” package. Forced-Labor Trade Pressure: The US Trade Representative proposed Section 301 tariffs tied to forced-labor enforcement failures, listing Chile among 60 investigated economies; proposed duties range from 10% to 12.5% depending on each country’s commitments. Indigenous Land Rights: Indigenous organizations warned Kast’s proposed overhaul of Chile’s Indigenous Law could weaken collective land protections and increase market pressure on Indigenous territories. Global Growth Watch: The OECD warned of slower global growth amid geopolitical shocks, with Argentina’s 2026 outlook holding at 2.8% as energy and fertilizer costs stay elevated.

Codelco Leadership Shake-Up: Chile’s state copper giant Codelco is set to appoint Jorge Gomez as its new CEO, replacing Ruben Alvarado, as the company navigates fallout from a scandal tied to inflated production numbers; the change is part of President José Antonio Kast’s reshaping of the firm, with a new board tasked with an external audit and investigation. Senate Economic Debate: Chile’s Senate is weighing President Kast’s RED bill after the lower house approved it, with lawmakers focused on the fiscal impact of tax cuts and spending reductions, while critics note the package omits any mention of digital assets/crypto. Trade Policy Shockwaves: The U.S. is moving to rebuild its tariff regime via Section 301, proposing additional duties tied to forced-labor concerns across dozens of economies, including Chile, with rates set at 10% or 12.5% depending on each country’s enforcement posture. Climate & Nature Watch: A new warning highlights the risk of deep-sea mining causing long-lasting, possibly irreversible damage to fragile Pacific ecosystems. Agri-Tech for Labor Shortages: Robot fruit-pickers are expanding operations in Chile, aiming to ease harvesting labor gaps while providing real-time productivity data to farmers. Energy & Industry: Sany shipped major wind turbine components for its first Chile project, signaling continued momentum in Chile’s clean-energy buildout.

Copper & lithium market pulse: Copper kept climbing after May’s surge, with Chile’s April output down 13.8% year-on-year to 399,954 tons, adding pressure to supply as UBS flags a 520,000-ton deficit and prices potentially reaching US$14,000/ton by September and US$15,500/ton mid-2027; Mining & logistics: LATAM Cargo launched a new weekly Frankfurt–Antofagasta freighter link aimed at northern Chile’s mining supply chain, cutting transit times versus routes via Santiago; Regulatory risk for mining: Chile’s environmental court struck down key parts of Collahuasi’s expansion approval over Indigenous rights and marine impact concerns, sending the review back for further analysis; Clean power investment squeeze: BlackRock-linked Atlas Renewable Energy paused about US$1 billion in Brazil projects after grid operator rejections and curtailments of 15%-25%, a problem also hitting Chile and other markets; Demographics watch: Chile’s birth rate fell to a historic low, with total fertility dropping below one child per woman (0.99 in 2025), raising long-term population replacement concerns; Trade & investment: Argentina moved to apply to join the CPTPP, seeking new market access as it advances other trade deals.

Demographics Shock: Chile’s birth rate hit a historic low, with the total fertility rate falling below one child per woman (0.99) in 2025, down sharply from 1993—raising concerns about long-term population replacement and an aging society. Mining & Markets: Copper and gold rallied in global trading as supply tightened and Chile’s April copper output fell to its weakest in 23 years; analysts also flagged Codelco’s shift toward profitability over maximum production. Logistics for Industry: LATAM Cargo launched a new weekly Frankfurt–Antofagasta freighter link aimed at mining-related cargo, cutting transit times and expanding direct options for northern Chile. Energy Deal: Zelestra completed a $1.1bn sale of its Latin America renewable platform to Promigas, transferring about 3,500 MW across Chile, Peru and Colombia. Local Waste Policy: Chilean municipalities in the Metropolitan Region pushed for stronger, scalable rules for organic waste management, arguing communes can’t “compete” and need a shared framework. Health Innovation: C2N Diagnostics and SouthGenetics partnered to expand access to blood tests for Alzheimer’s amyloid pathology across multiple Latin American countries, including Chile. Tech Connectivity: Motive highlighted regional growth in satellite connectivity and eSIM provisioning, citing Entel Chile’s early commercial LEO service reaching remote communities.

Chile’s policy pivot: President José Antonio Kast used his first Cuenta Pública to frame an “economic emergency,” citing a 3.6% of GDP structural deficit inherited from the Boric administration, and promised a legislative push on security, spending cuts, immigration tightening, and growth, with bills also targeting electricity rates, bureaucracy, and medium/small mining. Mining & energy: Grenergy signed a 12-year hybrid PPA for Oasis de Atacama phase in Chile, adding solar-plus-storage contracting momentum, while ContourGlobal inaugurated a Chilean hybrid solar plant with battery storage. Ports & infrastructure: Chile approved a $4.45B project to triple capacity of the country’s largest port, a major logistics boost for trade. Aquaculture pressure: Multi X reported a Q1 net loss of $5M as salmon prices stayed weak and global supply rose, with U.S. import tariffs weighing on its main market. Food & exports: Chile’s prune sector expects output to rise ~5% season-on-season but faces weather damage and tighter supply of large sizes, as Chinese demand favors bigger prunes. Security & logistics risk: Chilean prosecutors warned organized crime is shifting to new maritime routes through the Strait of Magellan to bypass enforcement and move contraband. Business expansion: Alsea launched its first Starbucks Smart Lounge in Chile, signaling continued retail/foodservice investment.

Renewables & Storage Deal: Grenergy signed a 12-year hybrid PPA for phase five of Oasis de Atacama in Chile, starting January 2028, with 242 MW solar and 1,412 MWh storage (linked to Algarrobal), as the company expands its Oasis platform to 5 GW solar and 22 GWh storage across phases. Energy Market Push: Sungrow and Sonnedix also moved Chile’s BESS pipeline forward with a large supply agreement for a Chile battery project, underscoring how storage is becoming central to Chile’s clean-energy buildout. Capital Markets: Ticketplus filed with the U.S. SEC for a proposed Nasdaq IPO (symbol “TP”), aiming to raise funds for its live-entertainment ticketing platform operating across Latin America. Mining & Commodities: Chile’s copper story stays tight as Codelco and broader supply narratives collide with demand expectations tied to AI and data centers; meanwhile, BHP shares edged up as copper and iron ore stabilized. Security & Trade Routes: Chile warned organized crime is shifting maritime trafficking routes through the Strait of Magellan amid tighter enforcement elsewhere. Agri-Food Exports: Chile’s avocado season closed strong with a 10% production increase to 265,000 tons, while Mexico’s early table grape harvest is pressuring U.S. prices through oversupply. Environment & Licensing: Aclara received a favorable consolidated environmental assessment recommendation for its Penco Module ionic clay project, a key step toward final authorization.

CEPA Minerals Push: Chile is offering India copper, lithium and cobalt as CEPA talks near the finish line, aiming to secure long-term access to exploration blocks and build a deeper value chain for EVs and advanced electronics. Energy & Industry Pressure: A cross-border investigation links coal extracted from Colombia’s Yukpa lands to coal-fired power in Chile’s Huasco, alleging major environmental damage and health impacts with little state or company response. Kast’s First Big Test: President José Antonio Kast defended his first 81 days and heads to his first “Cuenta Pública” before Congress, with approval sliding and the Senate set to vote on his tax “megareform.” Mining & Markets Watch: Analysts flag a copper deficit narrative shifting toward an “AI Energy Nexus” demand story, with 2026 forecasts clustering around a higher base case. EV Adoption Snapshot: Chile’s EV market share remains modest versus peers, with the latest figures showing only gradual gains into early 2026. Indigenous Land Under Urban Growth: In Temuco, a Mapuche community says urban expansion has reduced its ancestral territory by 97%, citing a “legal limbo” and service denials. Plastics Reuse Policy: A regional study says packaging reuse systems in South America are still fragile, noting Chile’s law exists but implementation is partial and returnables remain concentrated in soft drinks. Health Warning: Chile is mentioned among countries where Kambo is banned as health experts warn against unregulated “detox” frog-skin treatments after a death in the UK.

Chile Tax Debate: Deputy Irací Hassler warns Chile’s proposed tax “invariability” could lock in corporate tax rules for 25 years, limiting future governments and tying the state’s capacity for decades. Higher Education Quality Assurance: A Chile-focused critique argues accreditation has become more about meeting formal standards than driving real student progress and improvement. Energy & Industry: ContourGlobal inaugurated a Chilean hybrid solar-plus-storage project (231 MW solar plus 200 MW/1.3 GWh BESS), adding to the country’s push for firm clean power. Ports & Trade: Chile approved a $4.45B expansion for the San Antonio “Outer Port,” aiming to triple capacity and boost logistics capacity. Mining & Commodities: Chile copper output fell sharply in April, while broader market chatter keeps attention on copper’s 2026 outlook and supply tightness. Regulation & Competition: Chile’s competition authority fined Pluxee $39.6M over alleged collusion with Edenred. Business Moves: Galantas raised $100M for Chile gold/copper exploration, signaling continued capital flow into local mining.

Energy & Storage in Chile: ContourGlobal commissioned the Víctor Jara hybrid plant in Tarapacá, pairing 231 MW of solar with 200 MW/1.3 GWh of battery storage, designed for up to 6.5 hours of dispatch after sunset—positioned as the longest-duration utility-scale BESS in Latin America. Ports & Infrastructure: Chile approved a $4.45B project to triple capacity at the San Antonio “Outer Port,” a major logistics upgrade for trade flows. Mining Watch: Chile’s copper output fell 13.8% year-on-year to 399,954 metric tons in April, as lower ore grades and tougher comparisons weigh on production. Corporate Moves: Lundin Mining reported updated share capital after buybacks and filed its ESTMA transparency report; separately, it’s also pushing deeper into the Vicuña District with a $215M consolidation deal tied to Caserones and Los Helados. Indigenous Coastal Rights: Indigenous communities urged protection of Chile’s Lafkenche Law, warning that proposed changes to coastal governance could reshape ECMPO areas and customary use. Labor & Costs: Unemployment in Chile’s Metropolitan Region hit 9.7%, above the national average, adding pressure to household finances.

Copper Watch: Chile’s copper output fell 13.8% year-on-year to 399,954 metric tons in April, as lower ore grades and a tougher comparison base weighed on production—raising fresh concerns about a tightening global supply. State Copper Strategy: Codelco’s new chairman, Bernardo Fontaine, signaled a shift toward “profitably” and efficiency over pure volume, with directors also ordering a forensic review of 2024-25 production figures after past overcounting issues. Mining M&A: Lundin Mining is doubling down on the Vicuña District, completing a US$215m deal to consolidate stakes around Caserones and Los Helados, betting on structural copper deficits ahead. Ports & Trade: Chile approved a US$4.45bn expansion of the Port of San Antonio, adding a breakwater and new terminals to triple capacity to 6m TEUs/year. Clean Energy Buildout: ContourGlobal started commercial operations of a 231MW solar plant plus a 200MW/6.5-hour battery in Tarapacá, aiming to make renewables more “firm” for evening peaks. Food & Agriculture: Chile’s salmon exporter Multi X reported a near 40% drop in Q1 EBITDA to $18.7m as Atlantic supply surged and US prices weakened, with tariffs also pressuring results.

Port Expansion: Chile’s environmental authorities approved the $4.45B expansion of the Port of San Antonio, adding a 2.5-mile breakwater and two new cargo terminals to triple capacity to 6 million 20-foot containers a year. Mining & Metals: Copper futures held near $6.4/lb and were set for a second monthly gain as demand optimism tied to AI/data centers met supply constraints, with Chile production issues and rising U.S. imports in focus. Finance & Exploration: Galantas Gold completed a $100M private placement to fund gold and copper exploration and development in Chile, targeting production in early 2027. Energy Deals: Zelestra sold a 3.5GW Latin America solar-plus-storage portfolio to Promigas, while continuing EPC work in Peru and Chile. Aquaculture: AquaChile’s Q1 profits fell 19% as international salmon prices weakened amid higher global supply. Regional Security: Argentina, Chile, Bolivia, Ecuador and Peru signed a joint agreement in Santiago to curb transnational organized crime, including immigration and financial controls. Retail & Workspaces: Alsea opened Starbucks’ first “Smart Lounge” in Chile, adding bookable work and meeting areas alongside the standard café.

Lithium Value-Chain Push: Chile’s lithium policy is back in the spotlight as the government bans exports of unprocessed lithium to keep more value in-country. SQM Earnings Signal Tightening Market: Sociedad Química y Minera de Chile (SQM) beat Q1 expectations, with revenue up and margins improving as analysts point to a return toward a lithium deficit. Regional Security Cooperation: Chile, Argentina, Bolivia, Ecuador and Peru agreed to launch a coordinated action plan against transnational organized crime, with a rotating working group to set measurable steps. Port Expansion: Chile approved the $4.45bn San Antonio “Outer Port” construction, a major logistics upgrade for trade capacity. Marine Data for Policy: Chile launched IDEOS, an interactive platform tracking the environmental health of 105 coastal municipalities using open data on biodiversity, pollution and resilience. Tech & Trade Links: India is working with Chile and others to build non-China supply chains for critical minerals, while Vietnam’s new FTAs are expected to open South American markets for Vietnamese exporters. Business Climate Watch: OECD-based reporting shows Argentina lagging on foreign direct investment, while Chile ranks higher in the region. Outsourcing & Jobs: Kenya’s rise in BPO rankings highlights how labor costs and skills can reshape regional service hubs.