Chile Headlines- Metro Crash, Chile Inflation, Lithium Mining

Metro crashes near San Miguel

Residents near San Miguel were lucky to avoid any deaths or injuries when a metro train came off the rails and crashed into an apartment block. The train came off the tracks nearby to a playground, though no children were using the facilities at the time.

Owners and residents of the apartment have not ruled out legal action against the Metro service, saying that it was clear they there was negligence on the part of the driver and the service.

Residents demanded the closure of underground shops in the Forestal Plaza complex, stating that they are a risk to the security of the structure of the building and that they have been built too close to the Metro line.

A metro crashed into an apartment building near San Miguel. Luckily, nobody was hurt. Photo: Oscar Nieto via Twitpic

The train was not carrying any passengers as it was traveling to an above ground storage facility. The driver was taken to hosptial to check for any effects of the crash. An investigation is underway into the cause of the accident.

Chile’s inflation rises

The CPI rates for January have been released, showing inflation in Chile rose by 0.1% for the month. While this is lower than many economists predicted, it still leaves the Central Bank of Chile above their target of inflation.

The January figures take the inflation figure to 4.2%, well above the Central Bank’s target rate of 3%. It was a slowdown from December’s growth in inflation, which was recorded at 0.6%. Minister for the Economy Pablo Longueira attributed the high figure to seasonal and one-time factors.

The Central Bank of Chile recently dropped the official interest rate from 5.25% to 5%. Analysts await next week’s monthly meeting to see if the rate will drop once again.

Chile to promote use of lithium

Aside from being the largest producer of copper in the world, Chile also leads the world for both production and reserves of lithium. The Ministry of Mining plans to auction the rights to a number of sites throughout Chile which are not yet used for the mining of lithium.

It will be the first time since 1982 that new lithium contracts have been issued in Chile. Subsecretary of Mining Pablo Wegner claimed “we have enough lithium for 1,500 years and extensive experience in mining.”

The new contracts will be known as “Special Lithium Operations Contracts”. They will not require any changes to the current laws governing mining in Chile. Each company will be required to pay 7% of their sales to the Chilean government.

Lithium batteries have been seen as ideal to power electric cars, in a move away from fossil fuels, however many question the overall benefits of the move. Lithium is mined from salt flats, which make up unique ecosystems. In the past three years lithium projects in Bolivia have also expanded.

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