Medinah Minerals (Chile)
A mining exploration company strategically located in Chile. The company has actively engaged leading Chilean miners.
How many leading mining companiie do business in Chile.
Chile - Country Profile & Company History
General
Chile is a major producer of copper, gold, silver and molybdenum. It supplies approximately 40% of the world’s copper and most of the world’s major mining companies have a significant presence in Chile.
Chile is an excellent operating environment due to its modern and transparent market-based economy. Foreign firms enjoy the same legal and competitive rights and guarantees as local firms. The principle of non-discretionary treatment governs activities in every economic sector and is embodied in the 1980 Constitution and in all laws, including the Foreign Investment Statute known as Decree Law 600 (D.L. 600).
Foreign companies are able to hold 100% ownership of assets providing they have a company entity incorporated there, and there is no time limit on property rights. Chile also has a favourable tax regime. The attractiveness of Chile was reflected in the 2009 Fraser Institute Annual Survey of Mining Companies, where Chile ranked 2nd out of 41 countries on the index of regulatory certainty. Chile also achieved 1st position as the country considered having the best mineral potential.
Creation of Condor Mines
Condor Mines has been created by the merger between two Chilean companies: Tierra Amarilla SCM ("Tierra Amarilla") (RUT Number 76.030.198-1) and Condor Blanco SCM ("Condor Blanco") (RUT Number 76.666.460-1). Condor Mines was created through the agreement to merge 100% of Tierra Amarilla and 70% of Condor Blanco into a single firm with a dual, balanced strategy. Both subsidiaries are registered in Chile as Sociedad Contractual Minera (“SCM”) mining companies. The Chilean companies hold an extensive tenement position in northern Chile with a focus on gold and copper.
The owners of Tierra Amarilla and Condor Blanco became foundational shareholders in Condor Mines. They, including Mr Jose Bahamondes, Condor Mines' Operations Director, recognised the need to bring in a team of international exploration specialists and external capital to realise the potential of the tenements.
Tierra Amarilla's properties include strong exploration targets for epithermal gold-silver in the world-class Maricunga Belt. All projects host demonstrated mineralization and the lead time to determine specific drill targets is short. Condor Blanco’s assets also include mining titles to two copper projects, Cautiva and Fenix, which both have had a history of artisanal exploitation. Condor Blanco's licenses presents a unique opportunity to invest in close to production copper mining projects. The investment opportunity is considered to provide a significant return on investment within a 6-12 month time frame and a rapid payback based on low capital requirements. Initial investment also capitalised on opportunities identified and negotiated by Tierra Amarilla and Condor Blanco to consolidate the tenement package by executing options to lock-up world-class ground at Carachapampa and La Isla.
Condor Mines will base its operations in Copiapó, a major mining city in northern Chile. The merger of Tierra Amarilla and Condor Blanco provides Condor Mines with an experienced operating team of professionals and an established logistical base in this area. This has already allowed Condor Mines to commence exploration work on an efficient and low cost base.
Codelco functions as a multinational company by often receiving tax incentives and beneficial contracts from the government to recoup its initial investment. The state-run-operation goes against the current trend in the mining industry where it is predominantly led by four major conglomerates, Rio Tinto, BHP Billiton, Anglo American and Vale. The conglomerates have followed the lead of BHP Billiton, the largest mining company in the world, in expanding and extending business operations outside of mining a single natural resource. Codelco, despite not having the resources of a privately run company is able to arguably be Chile's most profitable company. With the rise of copper prices over the last decade, Codelco has become a very profitable mining company. Unfortunately for Codelco, as it is limited to only Chile, its room for expansion is severly limited, but has room to improve. If Codelco follows in the footsteps of the conglomerate mining companies, it could grow into one of the largest multinational companies in Latin America. Codelco should follow the lead of Vale, Brazil's formerly government-owned company that was privatized in 1997 and has since become the second largest mining company in the world. A recent report by The Economist regarding the growth of Vale over the last fifteen years showcased how the growth of Vale coincided with changes in the mining industry's business practices, and in unison with the increase of prices in natural resources, led to the creation of one of the largest multinational companies in the world. Codelco could follow that path and expand to new areas. Mining companies are continuously expanding to deal with the ever-changing price of natural resources, such as l?_r=1&ref=rio-tinto-plc">joining forces and operating concurrently to create more efficient and profitable mining areas, as well as, trying to reach untapped markets, in areas such as China. Another development that allowed Vale to grow into a major company was its ability and technical know-how in one natural resource, iron ore, to become the largest producer of that resource in the world. This, timed with the changes in prices, allowed it to buy smaller mining operations for other resources, and allowing it to become the leading global producer of resources such as nickel. Codelco, could use its expertise in copper and its setting in Chile to follow the practices of, not only Vale, but other mining companies to become a major mining multinational.
Codelco could join the ranks as a major mining producer if it became a privatized company. It could use its power as the largest producer of copper to expand on its technical abilities to prosper. With the forecasted growth in the demand for copper, led by China's need for natural resources, Codelco and Chile can profit on the market, as The Economist analyzed.
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