Chilean mines post healthy profit

SANTIAGO - Chile's biggest mining companies have more than doubled profits during the first half of 2006 to US$11.8 billion ($18.6 billion), boosted by record copper prices, according to figures released by the Chilean market regulator.

First half year combined revenue for the same 16 largest mining companies in Chile that report earnings, including state miner Codelco -- the world's largest copper miner -- and Escondida, majority-owned by BHP Billiton, was US$20.3 billion.

Figures for Chile's two biggest miners, showed that Codelco's net profit more than doubled to US$4.625 billion and Escondida's net income more than tripled to US$2.918 billion, compared to the same period last year.

The combined profit of all major miners in Chile not including Codelco was $7.19 billion, the market regulator said.

Mining profits have surged in recent years as copper prices rose to repeated records.

During the first six months of the year copper prices averaged near US$6069 per tonne, compared to US$3683 per tonne during the same period last year.

Comparative profit figures were not available in most cases as many companies only started to report profits this year to the market regulator, known as the Superintendent of Equities and Insurance (SVS), in compliance with a new law.

Amid soaring global metals prices, mining companies in Chile began to be subject this year to a new tax regime that required them to present quarterly results and pay a scaled, progressive special tax on revenue.

New tax rules came amid complaints from politicians that mining companies either did not pay enough tax, or did not pay any at all.

Company reports released on Wednesday included figures for Falconbridge's Collahuasi mine, Antofagasta's Los Pelambres and Anglo American's Sur Andes.

- REUTERS