Thursday, May 11, 2006

Profile: Mining in South America

According to an MBendi, South America Mining Report, "South America still attracts the most exploration dollars in the world – 27% of global gold exploration and 38% of base metals. Argentina has seen a constant reduction in exploration expenditure since 1997, with expenditure in 2000 totalling $110 million ($130 million in 1998).The floating of the Brazilian currency on world markets resulted in a collapse against the US dollar of up to 40%."

The president of Bolivian owned energy company Petrobas, is reported to have scheduled talks with Brazil- as bilateral agreements were discussed with Brazilian Energy Minister Silas Rondeau.

The heat is turning up in South America, as countries, but US commercial agreements with Latin American countries on an individual level, could be serving to undermine a goal of political and economic integration. Chile, Peru, Colombia and Central America are all tops on the list of countries with whom the US has signed free trade deals, while Uruguay and Paraguay could be next.

Is real integration for South America merely a pipe dream or is this idea worthy of merit?
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