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MIRA INFORM REPORT
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Report No. : |
497351 |
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Report Date : |
13.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
MINERA ESCONDIDA LIMITADA |
|
|
|
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Registered Office : |
Cerro El Plomo 6000, Piso 18, Las Condes, Santiago - Chile |
|
|
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Country : |
Chile |
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Date of Incorporation : |
14.08.1985 |
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|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Exploration, Mining, Processing and Commercialization of Mineral
Resources. |
|
|
|
|
No. of Employees : |
4,600 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Satisfactory |
|
|
|
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Chile |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
D |
CHILE - ECONOMIC OVERVIEW
Chile has a market-oriented economy characterized by a high level of
foreign trade and a reputation for strong financial institutions and sound
policy that have given it the strongest sovereign bond rating in South America.
Exports of goods and services account for approximately one-third of GDP, with
commodities making up some 60% of total exports. Copper is Chile’s top export
and provides 20% of government revenue.
From 2003 through 2013, real growth averaged almost 5% per year, despite
a slight contraction in 2009 that resulted from the global financial crisis.
Growth slowed to an estimated 1.4% in 2017. A continued drop in copper prices
prompted Chile to experience its third consecutive year of slow growth.
Chile deepened its longstanding commitment to trade liberalization with
the signing of a free trade agreement with the US, effective 1 January 2004.
Chile has 22 trade agreements covering 60 countries including agreements with
the EU, Mercosur, China, India, South Korea, and Mexico. In May 2010, Chile
signed the OECD Convention, becoming the first South American country to join
the OECD. In October 2015, Chile signed the Trans-Pacific Partnership trade
agreement.
The Chilean Government has generally followed a countercyclical fiscal
policy, accumulating surpluses in sovereign wealth funds during periods of high
copper prices and economic growth, and generally allowing deficit spending only
during periods of low copper prices and growth. As of 31 October 2016, those
sovereign wealth funds - kept mostly outside the country and separate from
Central Bank reserves - amounted to more than $23.5 billion. Chile used these
funds to finance fiscal stimulus packages during the 2009 economic downturn.
In 2014, President Michelle BACHELET introduced tax reforms aimed at
delivering her campaign promise to fight inequality and to provide access to
education and health care. The reforms are expected to generate additional tax
revenues equal to 3% of Chile’s GDP, mostly by increasing corporate tax rates
to OECD averages.
|
Source
: CIA |
CONFIDENTIAL
REPORT
|
COMPANY NAME |
MINERA ESCONDIDA LIMITADA |
|
TAX ID. TYPE |
RUT |
|
TAX ID. NUMBER |
79587210-8 |
|
CURRENT STATUS |
Active |
|
MAIN ADDRESS |
Cerro El Plomo 6000, Piso
18, Las Condes |
|
CITY/PROVINCE/STATE |
Santiago - Chile |
|
PHONE NUMBER(S) |
(56-2) 223.305.000/2579.5000/(56-5) 5220.3000 |
|
FAX |
(56-2) 2207.6520 |
|
REMARKS ON
IDENTIFICATION |
Neither website nor emails were found. This report was requested as: MINERA ESCONDIDA LTDA and with address:
RUT 79.587.210 8, Cerro El Plomo N 6000, LAS Condes, Santiago. Be advised
that the correct data are indicated above. |
CREDIT
OPINION
|
|
Industrial company that manufactures metallurgical products. It has
over 32 years of experience in the market where it seems to operate normally.
As it has long experience in the sector, it solidifies the its commercial
operations. |
|
PAYMENT RECORDS |
No Complaints |
LEGAL
INFORMATION
|
TYPE OF COMPANY |
Limited Liability Company |
|
INCORPORATION
DATE |
14/08/1985 |
|
CITY OF
REGISTRATION |
Santiago |
|
NOTARY |
Patricio Raby Benavente |
|
TERM |
Unlimited |
|
INITIAL CAPITAL |
US$ 65,727,000.00 Dollars |
|
LISTED AT STOCK
EXCHANGE |
No |
BACKGROUND. –
In 1979, UTAH DE CHILE INC and GETTY MINING (CHILE) agreed on A MIning
exploration program in the north of Chile and funded the operation in equal
parts, naming UTAH DE CHILE INC. as the executor of the project. On 03/14/1981,
a copper mineral deposit was found, which would be MINERA ESCONDIDA, being
established by Publid Deed dated August 14th, 1985 as a Limited Liability
Company. Afterwards, the incorporation was published in Diario Oficial dated
20/08/1985. The company is a mining company operated by BHP BILLITON, which is
engaged in the exploration, extraction, processing and commercialization of
mineral resources. The company is currently dedicated to the exploitation of
two copper deposits located in the second region of the Republic OF Chile, 170
kilometers southeast of the city of ANTOFAGASTA, at an altitude of 3,100 meters
above the level of the sea.
The initial capital of the legal status increased to US$ 6,727,000.00
Dollars and was contributed by ex-members of UTAH DE CHILE INC and GETTY MINING
(CHILE) INC. The Board of Directors is comprised of representatives of the
owner companies appointed as members of the committee.
The company is registered in the Register of Companies Subject to the
Specific Tax to the Mining Activity of the Superintendence of Securities and
Insurance. Pursuant to Exempt Resolution No. 618 of this superintendency, the
registration in the Register of Informant Entities dated December 15th,
2011 was canceled.
It is required to issue in electronic format only, tax documents
indicated in the VAT Act since 01/11/2014.
It produces concentrate copper through the sulphurated mineral float
processing and cathodes by lixiviation of oxidized mineral and low-label sulfide
biolixiviation.
As for the infrastructure, the company has two mines at the open clock
(ESCONDIDA and ESCONDIDA NORTE), two concentrating plants (LAGUNA SECA and LOS
COLORADOS), a plant of electro-wining, two mineral pipelines, a port (PUERTO
COLOSO) and a sea water desalination plant to supply, in part, the consumption
of its operations. BHP BILLITON LTD, its parent company, is developing a mine
water supply project, which shall have a capacity of 2,500 L/S, including the
largest desalination plant in the country.
The company is under supervision of the Superintendence of Securities
and Insurance (SVS). It is not an issuer of public offer values (law 20,382).
It is taxed with the specific tax to mining activity. It is a member of the
Chilean-North American Chamber of Commerce (AMCHAM CHILE) and the National
Mining Society of Chile (SONAMI).
The administration of the ownership of the property has been committed
by the members of a group of owners, composed of three members designated by
BHP ESCONDIDA INC., two members designated by RIO TINTO ESCONDIDA LIMITED, A
MEMBER DESIGNATED BY JECO CORPORATION and a member designated by JECO2 LTD,
having each partner the right to designate one or more alternate members.
COMMENTS ON LEGAL
ASPECTS. –
The above-mentioned incorporation date shall be considered as a
reference since such information was not directly provided by the subject.
The registration data (number of incorporation deed and name of notary
who authenticated it, etc.) could not be obtained from direct sources.
It is not considered as a Pro-PYME small-sized company by the Internal
Tax Service of Chile (SII).
The Internal Tax Service of Chile (SII) includes the company in the list
of large taxpayers according to Exemplary Resolution SII No. 100 dated August
8th, 2011 due to having annual incomes or sales equal to or greater than
360,000 UTM (Monthly Tax Unit) in all and each of last three commercial years.
It must be pointed out that in Chile the legal status of Stock Company
(SA) is divided in 2 types, Closely-held Companies and Open Stock Companies.
Both legal statuses use the same abbreviation SA (Stock Company).
The duration is renewable, tacit, successive and automatically in
periods of the same duration as it is expressed in the deed.
The company is not in the list of withholding agents.
COMMENT ON RELATED
COMPANIES. –
BHP ESCONDIDA INC. (BHP BILLITON) is
the largest natural resource company in the world and has its headquarters in
Australia. It is organized in nine divisions: aluminum, basic metals, diamonds
and special products, energetic charcoal, metallurgical charcoal, iron mineral,
manganese, oil and stainless-steel materials, which in full summary a hundred
of operations and corporate offices in each continent. The British company RIO
TINTO ESCONDIDA LIMITED, is also one of the largest natural resources companies
in the world, which has eight divisions: iron, energy, mineral industrial,
aluminum, copper, diamonds, technology and explorations. It participates in
around sixty operations in different countries. JECO CORPORATION JAPAN
CONSORTIUM formed by MITSUBISHI CORPORATION (70%), MITSUBISHI MATERIALS (10%)
AND NIPPON MINING & METALS COMPANY (20%). On 05/26/2010, INTERNATIONAL
FINANCE CORPORATION (IFC) sold its rights and shares to JECO 2 LIMITED, which
is a company established under the laws of the United Kingdom.
RELATED
COMPANIES
|
COMPANY NAME |
TAX ID. NUMBER |
COUNTRY |
|
BHP ESCONDIDA INC |
|
AUSTRALIA |
|
FUNDACION MINERA ESCONDIDA (FME) |
|
CHILE |
|
JECO 2 LIMITED |
|
ENGLAND |
|
JECO CORPORATION |
|
JAPAN |
|
MINERA SPENCE SA |
|
CHILE |
|
BHP BILLITON MARKETING ASIA |
|
SINGAPORE |
|
CÍA. MINERA CERRO COLORADO LTDA |
|
CHILE |
|
BHP CHILE INC |
|
CHILE |
BOARD
OF DIRECTORS, SENIOR EXECUTIVES AND SHAREHOLDERS
|
NAME |
JOB TITLE |
STAKE |
|
NEVES, MAURO |
President |
|
|
CASTILLO, MARCELO |
Integrated Operations Vice President |
|
|
CANALES, ALVARO |
HSEC Vice President |
|
|
GIOKA, IFIGENIA |
Human Resources Vice President |
|
|
BETZHOLD, JORGE |
Planning and Development Vice President |
|
|
LAGOS, MARCO |
Project Vice President |
|
|
VILAPLANA, PATRICIO |
Corporate Affairs Manager |
|
|
DUNCOMBE, SIMON |
Finance Vice President |
|
|
ROMERO, MAYTE |
Executive Assistant to President |
|
|
BHP ESCONDIDA INC |
Shareholder |
57.50% |
|
RIO TINTO ESCONDIDA INVESTMENTS LTDA |
Shareholder |
30% |
|
JECO CORPORATION |
Shareholder |
10% |
|
JECO 2 LIMITED |
Shareholder |
2.50% |
DATA
OF THE BOARD OF DIRECTORS, SENIOR EXECUTIVES AND SHAREHOLDERS
NEVES, MAURO
Brazilian. Mechanical
Engineer (Universidad Federal de Río De Janeiro). MBA from the Pontificia
Universidad Católica de Río De Janeiro. He started his profession in Brazil and
worked 9 years in Vale, taking several positions, such as: as World Director of
the Carbon Area. Since 2013, he worked as Executive, Commercial and Marketing
Vice President in Aurizon, the largest company in logistics services in
Australia.
CASTILLO, MARCELO
Chilean. He worked as Interim President of MINERA ESCONDIDA LIMITADA
since 2016. Later, he would take the position of Integrated Operation Vice
President in the mining company.
BHP ESCONDIDA INC
RUT: 59.023.350-1, CHILE.
RIO TINTO ESCONDIDA
INVESTMENTS LTDA
RUT: 59.023.330-7, CHILE.
JECO CORPORATION
RUT: 59.023.340-4, CHILE.
JECO 2 LIMITED
RUT: 59.158.690-4, CHILE.
OPERATIONS
|
SECTOR |
B- Exploitation of mines and quarries |
|
ACTIVITY |
Mining |
|
ISIC CATEGORY |
07- Extraction of metalliferous minerals |
|
ISIC CLASS |
0729- Extraction of other non-ferrous metalliferous minerals |
|
MAIN ACTIVITY |
Exploration, mining, processing and commercialization of mineral
resources. Brands: “MINESC”,
“ESCONDIDA”, “MINERA ESCONDIDA”, “CERO DAŃO”, “SIGMEL HSEC”, “SIMEL”, “TOMA
5”. |
|
% SALES IN CASH |
40% |
|
% SALES ON
CREDIT |
60% (terms at 30, 90 days) |
|
% TERRITORY OF
SALES |
35% (domestic market) |
|
% FOREIGN SALES |
65% |
|
N. OF EMPLOYEES |
4,600 |
LOCATION. –
TAX DOMICILE, ADMINISTRATIVE OFFICES: located at captioned address in a
corporate zone with easy access routes. Spacious premise kept in good repair. Area: 400 sq.m.
Former address: Av. Americo
Vespucio Sur 100 Piso 9, Las Condes, Santiago – Chile, until 2014.
OTHER ADMINISTRATIVE
OFFICES:
Av. De La Mineria 501,
Antofagasta – Chile. Phone: (56-2) 2207.6520
DEPOSIT: located in the Atacama Desert at 170 kilometers southeast of
the city of Antofagasta and 3,100 meters above the level of the sea region of
Antofagasta, with telephone number: (56 - 55) 220.3000.
COMMENTS AS TO
OPERATIONS. –
The company is engaged in the production of copper and copper cathode
concentrates, as well as gold and silver concentrates.
According to the National Institute of Industrial Property (INAPI), the
company currently has registered the following brands:
- MINESC (File No. 307482)
- HIDDEN (File No. 323695)
- MINERA ESCONDIDA (File
No.746783)
- ZERO DAM (File No.690828)
- SIGMEL HSEC (File No.
717275)
- SIMEL (File No. 718916)
- TOMA 5 (File No. 717026)
The production of copper of ESCONDIDA in the fiscal year 2017 (July 2016
- June 2017) decreased by 21%, to 772,000 tons which was caused by a 44 days
strike, which resulted in the reduction of the production in 214,000 tons.
In addition, four days of operations suspension were lost after the
fatality that had placed in October 2016 and the climate contingency at the
beginning of June, which impacted the production by 21,000 and 12,000 tons,
respectively. Therefore, the production of Pampa Norte (that comprises SPENCE
and Cerro Colorado) during the fiscal year 2017 increased by 1% to 254,000 tons
of copper. This way, the total production of copper decreased by 16% during the
2017 fiscal year, at 1.3 million tons. For the fiscal year 2018 (July 2017
-June 2018), it foresees an achievement between 1,655 and 1,790 million tons.
The company produces concentrate of copper and copper cathodes through
the operation of the open-pit mine and of the treatment plant of cathodes and
concentrates in the mine. The concentrate also includes gold and silver. The
concentrate is transported by a miner pipeline to Puerto Coloso, near
Antofagasta, where it is filtered and boarded to customers. The copper cathodes
are produced in a plant of oxides and sulfurs, in leaching piles and the plant
of electro-wining, located in the mine. Copper cathodes are transported by
railway to the port of Antofagasta, where they are shipped to the clients.
Main clients:
XSTRATA COPPER CHILE SA
HINDALGO INDUSTRIES LTD.
LS- NIKKO COPPER INC.
PAN PACIFIC COPPER CO. LTD.
STERLITE INDUSTRIES (INDIA) LIMITED
MITSUBISHI MATERIALS CORPORATION
WALSIN LIHWA CORP.
CORPORACION NACIONAL DEL COBRE
Main competitors:
GNL CHILE S.A.
EMPRESA ELECTRICA DEL NORTE GR
EMPRESA NACIONAL DE ELECTRICIDAD S.A.
FUNDICION TALLERES S.A.
CIA ELECTRO METALURGICA S.A.
MICHELIN CHILE LTDA
CORPORACION NACIONAL DE COBRE DE CHILE
FINNING CHILE S.A.
MINEPRO CHILE S.A.
KOMATSU CHILE.S.A.
ATLAS COPCO CHILENA S.A.C.
COMPAŃÍA MINERA ZALDIVAR SPA
KOMATSU REMAN CENTER CHILE S.A.
SALINAS Y FABRES SOCIEDAD ANONIMA
NORCAST LIMITADA
MTG CHILE SPA
SKC MAQUINARIA S.A.
The products offered include copper concentrates and copper cathodes,
FOREIGN
TRADE
|
|
IMPORTS |
|
YEAR |
2017 |
|
AMOUNT |
US$ 165,399,569.00 |
|
COUNTRIES |
USA, Trinidad and Tobago,
Canada, China, Germany |
|
NUMBER OF OPERATIONS |
1,237 |
|
|
IMPORTS |
|
YEAR |
2016 |
|
AMOUNT |
US$$ 115,595,062.00 |
|
COUNTRIES |
USA, Trinidad and Tobago,
Canada, China, Japan |
|
NUMBER OF OPERATIONS |
1,270 |
|
|
IMPORTS |
|
YEAR |
2015 |
|
AMOUNT |
US$$ 423,962,622.00 |
|
COUNTRIES |
Saudi Arabia, USA, South
Korea, China, Italy |
|
NUMBER OF OPERATIONS |
2,450 |
|
|
IMPORTS |
|
YEAR |
2014 |
|
AMOUNT |
US$$ 399,082,241.00 |
|
COUNTRIES |
Saudi Arabia, USA,
Canada, China, Germany |
|
NUMBER OF OPERATIONS |
2,026 |
|
|
EXPORTS |
|
YEAR |
2017 |
|
AMOUNT |
US$ 4,114,059,207.76 |
|
COUNTRIES |
China, Japan, South Korea, India, USA, Taiwan, Brazil, Thailand,
Italy, Arab Emirates, Netherlands, Australia |
|
NUMBER OF OPERATIONS |
561 |
|
|
EXPORTS |
|
YEAR |
2016 |
|
AMOUNT |
US$ 4,164,304,988.38 |
|
COUNTRIES |
China, Japan, South Korea, India, USA, Taiwan, Brazil, Italy,
Netherlands, France, UK, Colombia |
|
NUMBER OF OPERATIONS |
833 |
|
|
EXPORTS |
|
YEAR |
2015 |
|
AMOUNT |
US$ 5,435,353,497.80 |
|
COUNTRIES |
China, South Korea, India, USA, Taiwan, Brazil, Italy, Netherlands,
UK, Egypt, Australia, Canada |
|
NUMBER OF OPERATIONS |
757 |
|
|
EXPORTS |
|
YEAR |
2014 |
|
AMOUNT |
US$ 6,676,230,971.34 |
|
COUNTRIES |
China, South Korea, Japan, India, USA, Taiwan, Brazil, Italy,
Netherlands, South Africa, Australia, Germany |
|
NUMBER OF
OPERATIONS |
792 |
FINANCIAL
INFORMATION
All the information comprised in this report was obtained through
outside sources since the company’s representatives declined to provide
information on grounds of confidentiality.
No financial figures were obtained through outside sources.
FINANCIAL
COMMENTS. –
End of fiscal year: December 31st.
FIXED ASSETS. –
The company has plant, buildings, vehicles, machinery and equipment,
office equipment, furnishings, tools, among others.
INSURANCE. –
The company has an insurance policy against all risks. (Neither the
coverage amount nor the maturity date were provided.)
PAYMENTS
REFERENCES
|
LOCAL SUPPLIERS |
PHONE NUMBER |
CONTACT NAME |
|
HILTI CHILE LTDA |
(56-5) 5276.6962 |
|
|
CEMENTO POLPAICO S.A. |
(56-2) 2941.0300 |
|
|
SANDE S.A. |
(56-2) 2810.5600 |
|
|
FINNING CHILE S.A. |
(56-2) 2927.7000 |
|
|
WACKENHUT CHILE SA |
(56-2) 2556.0683 |
|
|
GRUPO IMSA CHILE SA |
(56-2) 2533.9010 |
|
|
KYCHENTHAL INDUSTRIAL Y COMERCIAL SA |
(56-2) 2753.0000 |
|
|
FOREIGN
SUPPLIERS |
COUNTRY |
PHONE NUMBER |
CONTACT NAME |
|
MARUBENI CORPORATION |
Japan |
(81-11) 212.2111 |
|
|
TOWNLEY FOUNDRY & MACHINE CO |
USA |
(800) 342.9920 |
|
|
BUCYRUS INTERNATIONAL INC |
USA |
(1-414) 768.4000 |
|
|
HARNISCHFEGER CORP. |
USA |
(1-414) 671.4400 |
|
|
PRO PART INC |
USA |
(1-307) 856.8733 |
|
COMMENTS OF
SUPPLIERS. –
The local suppliers consulted do not provide information on clients on
grounds of confidentiality.
BANKS
|
BANK NAME |
COUNTRY |
PHONE NUMBER |
|
BANCO ITAU CHILE |
Chile |
(56-2) 2686.0000 |
|
BANCO BBVA CHILE SA |
Chile |
(56-2) 2346.0910 |
|
BANCO SECURITY SA |
Chile |
(56-2) 2941.0300 |
|
BANCO CORPBANCA SA |
Chile |
(56-2) 2372.6900 |
|
BANCOESTADOS SA |
Chile |
(56-2) 2698.1245 |
|
BANCO DE CHILE SA |
Chile |
(56-600) 638.3838 |
|
BANCO SCOTIABANK |
Chile |
(56-2) 2768.6219 |
BANK
REFERENCES
Consulted banks do not provide information of its clients on grounds of
confidentiality.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.02 |
|
|
1 |
INR 90.12 |
|
Euro |
1 |
INR 80.09 |
|
CLP |
1 |
INR 0.11 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.