PRIVATE EQUITY AND RELATED FINANCING FOR MINERAL DEVELOPMENT

• Jurisdiction: Derecho Internacional

International Mining and Oil & Gas Law, Development, and Investment
(Apr 2011)
CHAPTER 13B
PRIVATE EQUITY AND RELATED FINANCING FOR MINERAL DEVELOPMENT
Nicolas Balmaceda
Barros & Errazuriz
Santiago, Chile

NICOLAS BALMACEDA has been a partner at Barros & Errázuriz Abogados, Santiago, Chile, since at January 2008. He graduated from Law School, Pontificia Universidad Católica de Chile, and obtained his Master of Laws in Energy and Environment program from Tulane University in Louisiana. He was an associate at LeBoeuf, Lamb, Greene & MacRae in New York City. He is a Professor of Legal Topics for Companies at the MBA and master of finance programs, ESE Business School, Universidad de Los Andes and also a Professor of Finance Law at the Master in Laws Program, Pontificia Universidad Católica de Chile. He is a published author of several legal articles and opinion columns on specialized magazines and national newspapers.

Barros & Errázuriz

ABOGADOS

Private Equity and Related Financing for Mineral Development

Comments by Nicolás Balmaceda RMMLF-IBA International Institute Rio de Janciro, April 4-6, 2011

South American Context

Private Equity in the Region

[Page 13B-2]

Chilean Background Information

1 Since 1973, Chile has implemented public policies to foster and consolidate serious and responsible macroeconomic management, greater economic openness and international integration, solid institutions and a fairer society.

2 Economic growth has been accompanied by a sharp drop in public debt, the stabilization of the country's external accounts and an increase in its international reserves.

3 Key factors to a favorable impression among foreign investors have been: greater competitiveness; growing international trade and rapid integration into world markets; modem telecommunications systems; a well-capitalized and internationally competitive banking sector; world-class public infrastructure, high-quality services and, ready availability of skilled workers.

4 Chilean economy is widely renowned for its track record of sustained growth. Between 1990 and 2008, it expanded at an average annual rate of 5.8%. The Global Competitiveness Report for 2009-2010 ranks Chile as being the 30th most competitive country in the world.

5 For 2010, Chilean GDP is estimated in US$200 billion, up from US$31.5 billion in 1990. Between 1990 and 2008, per capita income measured in terms of purchasing power parity (PPP) trebled to US$14,688. It also became the first South American country to join the OECD.

6 ...and last, but not least:

Chilean Capital Market

Source: IM Trust

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A Regional...