AGP Executive Report

Copper rally & Chile’s trade: Copper hit a new all-time high on the London Metal Exchange as tariff fears and US front-loading tightened supply, with inventories increasingly concentrated in the US. Macroeconomic snapshot: Chile still posted a trade surplus of $1.453bn in August (+8.8% y/y), driven by exports up 21.6%—notably copper sales at $4.625bn (+9.5%). Mining pressure: Despite the price surge, Chilean output is under strain, with reports pointing to weaker production and mine disruptions. Trade facilitation: India’s DGFT launched an open API for Certificates of Origin via its Trade Connect platform, aiming to cut duplicate data entry and speed approvals—relevant for exporters watching faster compliance workflows. Chile agrifood exports & inspections: Chile’s USDA-SAG Teno inspection station cleared a record 14.4m boxes of fresh produce for the US in 2025/26. Food safety: A Chilean supplier expanded an E. coli recall to Walmart’s Great Value Organic Triple Berry Blend across 16 states. Digital infrastructure debate: Chilean-linked concerns over data centers’ water and power footprint are echoed by coverage of mega-center plans in Argentina’s Patagonia.

Energy Storage in Chile: AES Andes has begun testing the 340 MW / 1,360 MWh Cristales battery energy storage system in Antofagasta, with commissioning of the linked solar plant expected soon. Crypto Shock in Chile: Tether-backed Orionx has permanently shut down after a forensic audit found a custody shortfall of more than $7 million, suspending withdrawals for 100,000+ users while it files criminal complaints against co-founders. Copper Outlook: Analysts say copper prices may need to rise further to close a supply gap driven by falling ore grades and higher investment needs, even as the metal hits record levels. Critical Minerals Strategy: Argentina, Bolivia, Chile and Peru signed a joint declaration to form a South American lithium alliance aimed at securing supply for the global energy transition amid US-China competition. Chile Business & Trade Policy: Chile’s new tax stability and arbitration framework for foreign investment is in focus as companies weigh long-term risk and cross-border disputes. Regional Finance Watch: The IMF is deepening its footprint in Latin America, with experts warning that funding conditions could increasingly reflect US geopolitical priorities.

Crypto & Regulation: Chilean exchange Orionx is permanently shutting down after a forensic audit found a custody shortfall of over $7M, freezing withdrawals for 100,000+ users while it pursues criminal complaints against co-founders Joaquín Díaz and Roberto Zibert; the CMF had already rejected Orionx’s authorization bid months earlier. Copper Watch: Antofagasta cut its 2026 copper production forecast even as H1 profits surged, rattling miners’ shares and underscoring how forecasts can outweigh strong results. IMF in LatAm: An IMF-focused report says the Fund’s footprint in Latin America is deepening again, with experts warning that geopolitical alignment with the US may shape future lending conditions. Chile Economy & Confidence: A commentary argues Chile’s orthodox policy mix isn’t translating into confidence, with unemployment near 9.5% and IMACEC weakness dragging growth expectations below 1%. Mining & Deals: Coverage highlights rising mining M&A deal value but weaker transaction confidence, with buyers more selective on valuation and execution risk. Energy Storage in Chile: AES Andes begins testing a 340 MW/1,360 MWh battery project, adding momentum to Chile’s grid-scale storage buildout.

Crypto & Regulation: Chile-based Orionx halted withdrawals and is shutting down after a forensic audit found a $7M financial hole, with claims that founders and former staff allegedly moved user funds to wallets outside the company’s control, triggering criminal complaints and leaving 100,000+ users without full refund guarantees. Macroeconomy & Jobs: A Chile-focused analysis argues that despite “orthodox” tax and incentive reforms under President Kast, confidence is weak and unemployment is at 9.5%, with IMACEC negative year-on-year in most early-2026 months and growth estimates below 1%. Mining & Infrastructure: Sacyr Concesiones won the second concession for Chile’s Route 57 Santiago–Colina–Los Andes, a 110+ km road upgrade with an ~€800M construction budget and ~20-year revenue outlook, pending administrative steps. Copper Outlook: A roundup highlights how Chile remains central to global copper supply, including Escondida and Collahuasi among the world’s biggest mines. Food Safety: A Chilean frozen-blueberry supplier is tied to an E. coli outbreak now confirmed in 17 cases, with multiple U.S. recalls and an import alert keeping shipments on hold at the border. Sustainability in Travel: A regional feature spotlights “green footprint” hotels in Chile and neighbors, focusing on renewables, waste and water efficiency, and local community ties.

Food Safety & Exports: A Chilean frozen-blueberry supplier, Frutas y Hortalizas del Sur S.A., is at the center of an E. coli O145:H28 outbreak now linked to 17 illnesses in the U.S., with regulators placing shipments on import alert and expanding recalls across Publix and Walmart freezers in multiple states. Mining & Infrastructure: Sacyr Concesiones won Chile’s Route 57 Santiago–Colina–Los Andes concession (110+ km) with an ~€800m construction budget, aiming to modernize the Santiago–Los Andes corridor and improve connectivity toward Argentina. Energy Storage Deal: Grenergy completed the $475m sale of its Gabriela solar-plus-storage phase in Chile to CVC DIF, with 272 MW solar and 1,100 MWh storage entering operations under a 15-year hybrid PPA. Critical Minerals Policy: A new focus is emerging on downstream processing capacity as the main bottleneck for critical minerals, with refining concentration leaving manufacturers exposed to controls and disruptions. Trade Talks: India and Chile are in late-stage CEPA/FTA negotiations, balancing Chile’s push for agricultural access with India’s need to protect farming while securing critical minerals supply. Logistics Education: DP World became the first Chile port terminal to receive the Explora Logística Seal for structured student visits, linking port operations with workforce development.

Infrastructure & Transport: Sacyr Concesiones won the Second Concession Route 57 Santiago–Colina–Los Andes, a 110+ km road upgrade in Chile with an ~€800m construction budget and ~€2.8bn expected revenues over 20 years, pending Ministry of Public Works procedures. Energy & Finance: Grenergy completed the $475m sale of Gabriela, the fourth phase of its Oasis de Atacama solar-plus-storage platform in Chile (272 MW solar, 1,100 MWh storage), to CVC DIF, with Grenergy staying on for O&M for five years. Mining & Investment Climate: Chile’s new tax stability regime for qualifying foreign investments (notably mining) was approved by Congress, aiming to lock in tax burden for large projects from 1 Jan 2027 or publication date, though key details will move to future regulations. Trade Talks: India and Chile are nearing a CEPA/FTA conclusion, balancing Chile’s push for agri access with India’s need to protect its farm sector while securing critical minerals. Food Safety Risk: A Chilean frozen-berry supplier linked to an E. coli outbreak has triggered multiple U.S. recalls and an import alert; cases now total 17 across Georgia and other states. Ports & Skills: DP World became the first Chile port terminal operator to receive the Explora Logística Seal for structured student visits at San Antonio.

Chile–India CEPA Talks: India is weighing Chile’s push for preferential access to select agri and horticulture items (like walnuts and salmon) against its own reluctance to open its farm sector, while both sides try to square critical-minerals access with Chile’s limits on granting mineral preferences. South America Diplomacy: Chile and Argentina moved to cool tensions over the Strait of Magellan, with both presidents reaffirming Chile’s sovereignty under existing treaties, even as Argentina’s “joint control” decree remains. Domestic Politics & Security: Chilean students protested the Madrid Forum in Santiago, linking it to Kast’s right-wing agenda and his security reforms, as police used water cannons and tear gas. Investment & Tax Rules: Chile’s Congress approved a tax stability regime for qualifying foreign investments via state contracts, aiming to give fiscal certainty from 2027, though key details will depend on future regulations. Mining & Water Assets: Algonquin agreed to sell its 64% stake in Chilean water utility Suralis to Toesca for $126.5M, supporting a simpler regulated-utility strategy. Aviation Capacity: Chile’s industry is targeting over 1M extra annual airline seats by extending hours at existing regional airports, including 24-hour operations at La Araucanía.

Trade & Investment: Chile is in the spotlight as India pushes to conclude an India–Chile CEPA/FTA track, while India’s commerce minister Piyush Goyal says the India–US BTA will be finalized only after Washington offers a preferential tariff edge versus competitors. Energy Storage & Power: AES Andes has started testing a 340 MW / 1,360 MWh BESS at its Cristales project in Chile’s Antofagasta region, with commissioning of the linked solar plant expected soon. Copper Market Watch: US refined copper imports hit a record 225,094 tons in July, with 46% coming from Chile—traders front-loaded shipments ahead of potential tariff moves. Food Safety & Exports: A Chile-based frozen berry supplier, Frutas y Hortalizas del Sur S.A., expanded a recall tied to an E. coli outbreak, now including Walmart’s Great Value Organic Triple Berry Blend sold in 16 states. Regional Geopolitics: Chile’s President José Antonio Kast reiterated support for Argentina’s sovereignty claims over the Falklands and backed talks, after meeting Javier Milei, who also escalated sanctions threats tied to offshore oil activity.

Chile-Argentina Business Ties: President Javier Milei met Chile’s José Antonio Kast in Santiago during the Madrid Forum, pushing deeper coordination among “freedom” governments and signaling a tighter regional right-wing policy alignment. Rail & Connectivity in Chile: Teltronic will supply the broadband communications system for EFE Trenes de Chile’s new lines, including a private 4G network and train-to-ground data transmission for the first ETCS Level 2 rollout. Energy Storage in Chile: Engie started up 251MW of battery energy storage projects in Chile, while Grenergy sold the fourth phase of its Atacama solar-plus-storage complex. Logistics & Trade Corridors: DHL Global Forwarding acquired Uruguay’s Aero Cargas, adding its first direct Uruguay operation and strengthening its Peru–Ecuador–Argentina–Chile logistics cluster. Mining & Lithium Watch: SQM reported record lithium sales in the first half of 2026 and moved forward with capacity expansion plans tied to its Chile operations and Western Australia JV. Food & Consumer Demand: Nestlé announced R$2bn in Brazil investments for nutrition and health, including a baby formula plant in Minas Gerais with potential Chile-linked supply during ramp-up.

Copper & Mining Watch: BHP reported a sharply higher annual profit as copper overtook iron ore as its top earnings driver, while shares eased amid broader materials weakness. Chile Market Signals: Capstone Copper shares slid after costs ran above guidance and a labour stoppage plus softer ore grades added pressure, as investors grew more cautious on growth-sensitive miners. Chile Supply Chain & Weather Risk: Freehill Mining said its Chilean aggregates sales held up despite El Niño-amplified flooding disrupting transport to its Islon and Yerbas Buenas sites; demand rebounded once access returned. Lithium Milestones: Galan Lithium marked first processed lithium chloride from its Hombre Muerto West brine project in Argentina, moving from commissioning toward ramp-up. AI Infrastructure & Power: PwC projects AI data-centre investment could reach $31.6T by 2050, with power availability shaping where Chile’s renewable-heavy positioning stands out. Trade Policy: India is pushing new free trade deals (including with Chile) to access about 75% of world trade, while Chile-India CEPA talks aim to wrap by year-end. Education & Fertility: Research presented at the Bank of Korea links intense private tutoring and status competition to lower birth rates, a reminder of how social pressures can hit long-term labour supply.

Chile Economy Watch: Weak activity and a shaky labor market are adding pressure to President José Antonio Kast’s agenda, with Chile’s Monthly Economic Activity Index down 1.5% in July and unemployment at 9.5% (May–July), the highest since 2021. Copper & Markets: Copper slid toward $6.4/lb on rate and demand worries, though tight supply helped; Chile’s output fell 9.4% in July. Renewables Deal: CVC DIF completed the Gabriela hybrid solar-plus-storage project in Northern Chile (272 MW solar, 1,100 MWh batteries) with a 15-year USD inflation-indexed PPA. Food & Trade Policy: A U.S. 12.5% tariff on Chilean produce is framed as a direct threat to Chile’s fruit competitiveness and margins, with spillovers to jobs and investment. Logistics & Trade Links: DHL Global Forwarding acquired Uruguay’s Aero Cargas, integrating it into its Peru–Ecuador–Argentina–Chile cluster and expanding direct operations in Uruguay. Energy Storage Growth: Chile continues to attract large-scale battery projects, including new grid-scale BESS developments highlighted in the week’s coverage.

Copper Market Watch: Copper futures pushed above $6.6/lb as Chile’s July output fell 9.4% y/y, with disruptions also weighing in Indonesia and the DRC, while traders watch potential US import-tariff moves. Chile Politics & Business Climate: Chilean students (ACES) called for a protest Sept. 3 at Baquedano Metro against President Kast’s tax reform, the Protected Schools Act, and a proposed public security emergency without parliamentary approval. Mining & Capital Allocation: Reuters reports BHP’s chief commercial officer Rag Udd will step down end-January, a key role in iron ore negotiations with China, as BHP navigates tighter terms. Energy Transition: Chile-linked momentum in storage and solar continues in global coverage, while a separate report highlights solar’s uneven growth and grid constraints in Europe. Regional Trade & Logistics: Punta Arenas will host a late-September “Business Showroom” to connect Falklands firms with Magallanes businesses, supporting a second shipping link. Critical Minerals Supply: LG Energy Solution signed a 10-year lithium carbonate supply deal with Smackover for 8,000 tons/year starting 2029, underscoring battery supply chain bets tied to Chile/Argentina mining.

Chile–Venezuela Justice: Chilean prosecutors say the Ronald Ojeda murder case points to Venezuela’s Interior Minister Diosdado Cabello, alleging he negotiated and helped pay for the operation, as key suspects arrive after extradition. Mining & Tech: MacLean Engineering signed a five-year program with Codelco to test underground mining solutions at El Teniente, focusing on trench scaling, tunnel development and service infrastructure. Energy Storage in Chile: Engie reached 663 MW of operational BESS capacity in Chile, while Enel secured grid connection for a 356 MW/2.1 GWh BESS project—both signaling continued buildout of storage to back renewables. Critical Minerals & Trade: A new policy roadmap is meant to help miners navigate China-linked investment in Canada, after shifting rules around inbound mining investment. Agriculture & Water: Northern Chile’s table grape regions show major reservoir recovery and strong snowpack, potentially improving irrigation security and next-season production prospects. Sports Business: Crystal Palace is set to loan Chilean winger Darío Osorio from Midtjylland with an obligation to buy for over €26M.

Copper Watch: Chile’s copper production fell 9.4% year-on-year to 403,424 tons in July, hit by bad weather in the north and maintenance at major mines—raising fresh supply-tightening concerns. Mining Pipeline: FMR Resources is moving toward drilling at its La Lorena project in central Chile after completing preliminary 3D IP inversion modelling at La Martuca, refining chargeability targets and drill planning. Battery Supply Chain: LG Energy Solution signed a long-term lithium carbonate deal with Smackover Lithium (US), securing 8,000 tons annually from 2029 for 10 years (80,000 tons total) to support North American energy storage and EV cathode production. Trade & Access: Canada’s ratification lets the UK fully access CPTPP from Sept. 1, 2026, with over 99% of UK goods exports to CPTPP members eligible for zero tariffs—Chile included. Procurement & AI: A new draft framework for public procurement pushes Chilean-style state buying toward structured, data-driven planning and more automation, as governments try to catch up with the AI race.

Chile Innovation & Conservation: Chilean researchers developed a therapeutic suit made with copper and zinc to speed recovery for injured penguins after net entanglements, using microscopic metal particles woven into red fabric to reduce bacteria and support faster tissue healing. Telecom Leadership: Digicel Group named Salvador “Salva” Hierrezuelo group chief business officer, effective Sept. 1, bringing Telefónica Chile B2B experience to expand Digicel Business. Mining Deal Watch: Glencore is central to Anglo’s $50bn copper merger reshaping South Africa-linked Anglo, with Anglo expecting up to $1.4bn in annual earnings from integrating Teck’s Quebrada Blanca with Collahuasi—though Glencore’s 44% stake could drive tough negotiations. Trade Diplomacy: India and Chile advanced CEPA talks in Santiago, aiming to conclude negotiations by end-2026 and expand cooperation across healthcare, energy, minerals, agriculture and engineering. Energy & Infrastructure: IFX Networks plans to invest over $400m in Latin America by 2027, with about $51m earmarked for Chile to boost connectivity and data-centre capabilities.

Renewables Investment: Grenergy’s Solar Antofagasta filed its environmental impact declaration for Parque Fotovoltaico Antofagasta 1: a 516.9 MWp solar plant plus a 430 MW battery energy storage system (~3.01 GWh, about seven hours), in María Elena (Antofagasta region), with an estimated ~$250m solar capex and ~$270m for the BESS, including a new 33/220 kV “Salitre” substation and 20.7 km transmission line. Mining Dealmaking: Sumitomo and G Mining agreed to buy a combined 25% stake in Tintina Mines via a jointly funded vehicle, advancing the Dos Amigos copper-gold project in northern Chile toward a final investment decision. Copper Market Watch: Copper surged toward $7 amid tariff-driven stockpiling and supply tightness; the key debate is whether the move is structural versus temporary, with Cochilco’s 2026 forecast still far below current Comex levels. Trade & Diplomacy: India and Chile stepped up CEPA talks, aiming to conclude negotiations in 2026 and focusing on market access and critical minerals cooperation. Food & Consumer Tech: Apple raised Apple TV and Apple One Individual subscription prices in Chile (and other countries), adding pressure on household budgets as services costs climb. Industry Leadership: Chile’s Salmon Council said executive president Loreto Seguel will step down, as the sector navigates tariffs and regulatory uncertainty.