The global economic crisis has hit South America. Brazil’s huge economy has been severely impacted while Argentina’s is on the verge of worsening. These countries are the driving force behind the continent’s end markets that power industrial minerals demand.
Meanwhile, the significant mineral production base of Chile is suffering owing to the market fortunes of its biggest customers in North America, Europe and Asia where construction and automotive industries, in particular, have been ravaged.
Argentina
“We are calling for rationality, responsibility and understanding that the world is going through a very important crisis that Argentina isn’t removed from,” said Argentina’s Interior Minister Florencio Randazzo.
While not in a situation as critical as Brazil, Argentina has cause for concern; its economy is in double digit inflation (estimated 20%) and the drying up of job opportunities have been compounded with major cuts in the automobile sector.
As Randazzo stressed: “Maintaining economic activity...