AGP Executive Report

UN Leadership Race: Ecuador’s Maria Fernanda Espinosa and Guyana’s Carolyn Rodrigues-Birkett have joined the race to replace António Guterres as UN secretary-general, with six candidates now in play and four women among them. Nuclear Security: A broad coalition of countries, including Chile, condemned a May 17 drone attack on the UAE’s Barakah Nuclear Plant, warning of risks to civilian safety and potential transboundary impacts. Chile Telecom Infrastructure: Subtel launched a cable removal and network reorganisation program in Chile’s Coquimbo region, targeting disused wiring across 15 municipalities with ClaroVTR, Entel and Movistar. Water Innovation for Agriculture: In northern Chile, communities are capturing camanchaca fog with “fog catchers” to turn scarce humidity into usable water. Mining & Critical Minerals: UNCTAD highlights how critical minerals policy is shifting toward export controls and value capture, while copper demand is increasingly tied to AI data centers. Chile Justice & Organized Crime: Chilean prosecutor Héctor Barros said efforts to bring Tren de Aragua leader “Niño Guerrero” to court continue after the US-Venezuela operation.

Telecom Infrastructure: Chile’s Subtel is rolling out a cable removal and network reorganisation programme in the Coquimbo region, targeting disused wiring and inactive aerial infrastructure across 15 municipalities, with operators ClaroVTR, Entel and Movistar already working in La Serena. Mining & Drilling Update: Nobel Resources says it has completed drilling at Pampa Austral and started drilling at its Cuprita project in Chile, with geophysical work pointing to higher-temperature porphyry copper system alteration zones now being tested. Copper Market Outlook: New analysis flags 2026 as a potential turning point for copper, with AI data center demand adding pressure on supply and raising the risk of a sustained refined copper deficit. Energy Transition (Chile): Chile is moving ahead on battery storage policy, including the release of first power auction rules that allow storage, supporting the next phase of grid flexibility. Glacier Risk: Chilean researchers report record Antarctic Peninsula warmth, with rain and melting observed on glaciers—an early warning for long-term ice stability. Security & Finance (Chile link): Chilean prosecutors say Tren de Aragua’s expansion in Chile includes a banking infiltration case tied to money laundering, as international operations target the gang’s leadership.

Copper Outlook 2026: Analysts warn the refined copper market could tip into a sustained deficit by 2026 as AI data centers ramp up power demand while mine supply stays flat, with copper-intensive infrastructure needs adding pressure. Copper Supply Shift: A separate forecast argues the “Great Re-Mapping” is moving growth toward the DRC as Chilean output faces grade declines and operational constraints, raising volatility risk for the late 2020s. Mining M&A: The industry is also seeing a “buy vs. build” turn, with mid-tier consolidation accelerating as majors chase de-risked projects to secure critical minerals faster. Chile Energy & Mining Tech: Codelco and France’s CEA-Liten signed a technology development deal aimed at electrifying underground mining equipment, aligning with broader electrification momentum. Infrastructure Deals: The IIICF in Macau ended with 21 agreements worth US$9.9B across transport, construction, energy, mining and smelting, including Chile-linked participation. Logistics & Trade: A Chile-relevant customs fraud case highlights how forged origin declarations can trigger large duty losses, underscoring compliance pressure for importers.

Fishing Policy Shake-Up: Chile’s Subpesca withdrew a proposed new Fishing Law meant to replace the criticized “Longueira Law,” reopening debate over transferable fishing licenses and the future of license terms and competitiveness. Mining & Supply Chains: A new wave of copper-focused M&A is accelerating as majors favor “buy vs. build,” with 2026 outlooks pointing to deficits and demand spikes tied to AI data centers. Energy Storage in Chile: Grenergy inaugurated a 3.5GWh battery energy storage system at its Oasis de Atacama complex, signaling momentum for large-scale storage in Chile’s power market. Regional Connectivity: Paraguay authorized Paranair to launch new international routes linking Asunción with northern Argentina, Chile, and Bolivia—aiming to cut travel time and support cargo and trade. Chile Tech for Mining: Codelco signed a technology development agreement with CEA-Liten to boost electrification of underground mining equipment, pushing efficiency and modernization. Security & Trade Risks: Reports on a US-Venezuela operation killing Tren de Aragua’s leader highlight ongoing pressure on criminal networks tied to regional mining areas.

Sustainable Shipping & Tourism: French-Swedish polar leader Sophie Galvagnon’s Selar is preparing the Captain Arctic, billed as the world’s first wind- and solar-powered polar cruise ship, aiming to cut emissions and operating costs despite a higher upfront price. Mining & Critical Minerals: Analysts flag 2026 as a mid-tier consolidation year as copper demand tightens, with AI data centers adding a new pull on “red metal” supply. Chile Energy & Mining Tech: Codelco and CEA-Liten signed a technology deal to electrify underground mining equipment, pushing efficiency in Chile’s mining heartland. Food & Agriculture Pressure: Rising berry prices are straining household budgets, with parents of toddlers feeling the squeeze most. Security & Regional Industry Risk: The Tren de Aragua leader “Niño Guerrero” was reported killed in a US-Venezuela joint operation, underscoring how organized crime and mining-linked routes can spill into regional business stability. UN Diplomacy: Chile’s former president Michelle Bachelet met China’s Wang Yi ahead of the UN secretary-general race, as major powers position for the next leadership.

Mining & Safety: Chile’s Alcaparrosa copper mine sinkhole is back in the spotlight after investigators linked the 2022 collapse to mining activities, citing a subsurface void and water presence; Lundin Mining temporarily halted operations and faced sanctions while court proceedings continue. Energy Transition: Peru moved to fast-track critical minerals by naming lithium and uranium “critical and strategic,” aiming to speed permitting for major projects tied to clean energy storage and electromobility. Copper Markets: A new outlook argues the 2026 copper balance could swing between tight supply and deficit, with AI-driven data center demand adding fresh pressure on prices. Finance & Compliance: A Chilean debate over banking secrecy is reignited by claims that the “Aragua Train” laundered about $78 billion pesos through the financial system, pushing lawmakers to revisit access rules for suspicious transactions. Regional Connectivity: Paraguay authorized new Paranair routes connecting Asunción with northern Argentina, Chile (Iquique), and Bolivia, aiming to cut travel times and boost trade links across the Southern Cone. Global Crime: US and Venezuela say they killed Tren de Aragua leader “Nino Guerrero” in Bolívar state, underscoring the gang’s reach including Chile.

Mining & Safety: Chile’s geology agency Sernageomin says a nearly perfect circular sinkhole in the Atacama desert—plunging 650+ feet—was triggered by subsurface voids linked to operations at the Alcaparrosa copper mine near Tierra Amarilla, where Lundin Mining had to halt activities and faces ongoing environmental and safety scrutiny. Food Policy & Health: A new study in The Lancet credits Chile’s 2016 food warning-label and marketing restrictions with lowering childhood overweight/obesity risk, adding fresh support for front-of-pack labels and tighter school food rules. Energy Transition: Ember reports wind and solar hit 22% of global electricity generation in April, overtaking gas for the first time on a monthly basis, reinforcing the momentum behind renewables. Mining Industry People: Mineral resource consultant Raul Escarrachi was named to Marquis Who’s Who, highlighting decades of work across gold and copper assessments. Energy Storage in Chile: Grenergy inaugurated a 3.5 GWh battery project in Chile’s Atacama, expanding its storage push.

Energy Auctions: Chile’s National Energy Commission approved preliminary terms for the 2026/01 power supply auction, the first to let energy storage bid as a standalone supply resource. The 15-year tender totals 2,835 GWh/year across two blocks (1,575 GWh/year from 2029–2043 and 1,260 GWh/year from 2030–2044), with time-of-day delivery bands and exclusions for coal and oil fuels—pushing renewables-plus-battery strategies. Mining Electrification: Codelco signed a one-year deal with France’s CEA-Liten to electrify underground mining equipment, including simulations, lithium battery testing, and techno-economic analysis, supported by the French FASEP fund. Packaging Compliance: Chile is tightening enforcement of packaging rules under Decree 30, raising expectations for recycled content, traceability, and reusable formats—especially for food service, where single-use items are restricted. Critical Minerals Trade: UNCTAD warns critical minerals are reshaping global trade as demand surges, urging more coordinated rules to avoid costly, fragmented agreements. Mining Tech & Rare Earths: Chilean Cobalt Corp. updated progress on its NeoRe rare earth project in southern Chile, advancing exploration, engineering, permitting, and a modular extraction plant plan.

Copper Deal: Norfolk Metals is buying 100% of Chile’s Ciclón copper project for US$50m and launching an institutional raise of up to US$120m to back its “reset,” betting on the asset’s permitted, high-grade status near existing regional infrastructure. Food Policy Impact: A Lancet study points to Chile’s 2016 front-of-pack warning labels plus school sales and marketing restrictions as plausible national-level drivers of lower childhood overweight/obesity risk. Energy & Aquaculture: AKVA Chile is expanding low-emission salmon farming with solar-powered cages and vessels, aiming to cut direct emissions while meeting growing demand for lower-footprint seafood. UN Politics: Former Chilean president Michelle Bachelet says any UN Security Council veto over her candidacy would be “an honor” if tied to democracy, multilateralism, women’s and human rights. Climate & Industry Risk: Coverage flags El Niño’s likely return and potential intensification, a reminder for Chile’s water, energy, and supply-chain planning.

Energy Storage in Chile: Acciona Energía will build a 1GWh battery energy storage system in Chile’s Atacama Desert, doubling its planned storage capacity there with a 196MW/980MWh project tied to the El Romero solar plant, targeting commercial operations by end-2027. Copper Market Watch: Absa’s Shirley Webber warns the copper deficit could persist as demand from electrification and renewables outpaces new supply, pushing miners toward faster brownfield expansions over brand-new mines. Mining Dealmaking: Norfolk Metals is pivoting to Chile with a US$55M acquisition centered on the advanced Ciclón copper project, backed by a planned up-to-$120M capital raise. Food Tech M&A: Molinos Río de la Plata will buy NotCo’s plant-based food and beverage operations in Argentina and Uruguay, extending Molinos’ push into new categories for younger consumers. Critical Minerals Policy Lens: A UNCTAD update highlights how copper, nickel, lithium and rare earth supply chains remain concentrated—especially in processing—raising geopolitical risk for mineral-rich countries. Weather Risk for Agriculture: El Niño has officially begun, with potential knock-on effects for rainfall, crop yields and commodity flows into year-end. Logistics Security: A cargo theft report says attacks are getting more coordinated and costly, with Chile among affected corridors. Sports Media (Chile): DAZN will carry DSPORTS for World Cup 2026 across Chile and four other LatAm markets.

Salmon Crackdown: Chile’s Sernapesca and investigative police carried out a sting across Los Lagos and Los Ríos, raiding 58 homes, arresting 54 people, seizing 12 tons of illegal salmon and over CLP 100 million in cash, targeting alleged theft and money laundering tied to wild-caught and farmed product. Mining & Water Risk: Boundary Waters supporters in the US are sounding alarms after Congress ended a 20-year mining ban, saying Antofagasta-linked Twin Metals could seek approval for an underground copper-nickel-cobalt mine near protected wilderness. Energy Storage in Chile: Grenergy inaugurated a 3.5 GWh battery project at its Oasis de Atacama solar-plus-storage complex, adding to Chile’s push for large-scale storage. Chile-Copper Investment Signals: Antofagasta plans to invest $909m to extend the Zaldivar mine life, underscoring continued copper supply focus. Trade & Digital Rules: The EU and South Korea signed a digital trade pact to ease cross-border data flows and electronic contracts, with Chile referenced as part of the EU’s broader digital trade network. Glacier Monitoring: NASA imagery shows rapid retreat at Chile’s Tyndall Glacier, with a new lake forming as the ice front calves. Citrus Outlook: Chilean citrus season is starting with a favorable US supply situation, supporting prices for mandarins, oranges and lemons.

Chile-Morocco Trade Push: Rabat and Santiago met to expand ties in trade, investment, agriculture, mining, renewables and port infrastructure, with Chile eyeing Morocco as a gateway to Africa and food exports to Africa topping $450m in 2025. UN Leadership Race: Chile’s Michelle Bachelet joined two other women candidates in a Geneva debate, arguing it’s “about time” for a woman to lead the UN—while stressing the next chief must be the “best woman.” Salmon Industry Pressure: The Chile Salmon Council urged exporters to diversify as tariff uncertainty clouds U.S. demand, while Blumar reported Q1 profits down 44% as salmon-farming results dragged on. Energy Storage Milestone: Grenergy inaugurated the 3.5 GWh “Elena” BESS in Chile’s Antofagasta region, part of the Oasis de Atacama expansion to 14 GWh by 2028. Lithium Market Signal: SQM shares rose after Scotiabank reiterated a bullish outlook, citing strong demand growth and low-cost advantages at Salar de Atacama. Mining Equipment Local-Content Test: Zimbabwe’s record mining machinery imports spotlight ongoing dependence on foreign suppliers despite local-content goals. Supply Chain Talent Move: McElroy appointed Rafael Quintero to lead global sales, including experience supporting mining expansion in Africa.

Lithium Market Boost: SQM shares jumped more than 3% in Santiago after Scotiabank reiterated a bullish outlook, citing strong lithium demand growth, low costs at Salar de Atacama, and potential expansion decisions tied to Mt. Holland. Mining & Capital Markets: ExGen Resources announced a $1m non-brokered private placement to fund exploration and a near-term restart plan for Chile’s Andacollo gold mine. Data Centers & Jobs: Aligned Data Centers won Great Place To Work certification again across the US and Latin America, including Chile, highlighting workforce development as it builds critical digital infrastructure. Energy Storage in Chile: Acciona Energía is planning a 196 MW / 980 MWh battery project in Chile, adding momentum to the country’s grid-scale storage pipeline. Cultural Hub in Santiago: Santiago’s Alameda avenue network launched the Red Alameda Cultural, coordinating 52 institutions to turn the corridor into a shared cultural platform. UN Leadership Debate: Chile’s Michelle Bachelet joined two other Latin American candidates in a Geneva debate on reforming the UN and strengthening human rights as the organization faces a financial squeeze.

Mining & Water Security: Antofagasta will invest about $909m to extend the Zaldivar copper mine life to 2051, adding a pumping system to reuse treated wastewater and cut reliance on continental water by 2028. Critical Minerals: Aclara Resources received Chile’s environmental qualification approval for the Penco Module rare earths project in Biobío, positioning it as one of the few heavy rare earth options outside China. Energy Storage in Chile: Grenergy inaugurated Elena, the largest battery plant in the Americas (3.5 GWh, scaling to 7 GWh by 2028) as part of its Oasis de Atacama hub. Renewables & Risk: A report highlights organized theft targeting Chile’s solar farms in the Atacama, where gangs cut cables and panels—raising security and continuity concerns for power operators. Trade & Agribusiness: Chile is pushing fresh fruit, seafood, pork and wine partnerships after the Chile-ASEAN Business Summit 2026, with the Philippines showing strong import growth. Industry & Services: Aligned Data Centers earned Great Place To Work certification again across the US, Brazil, Colombia, Chile, and Mexico, underscoring the region’s push for AI-ready infrastructure.

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.