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Chile's mining sector contracts in May as local copper production falls 1.4%

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(Kitco News) - According to Chile’s National Institute of Statistics (INE), the country’s Industrial Production Index (IPI) expanded 1.8% in May 2022 due to the increase in the manufacturing (3.5%) and electricity, gas and water (2.9%) sectors, while mining sector fell (-0.3%).

INE said that decline in Chile's mining sector (IPMin index) was due to the lower activity registered in the country’s metallic mining subsector, which dropped by 2.4% due to the decrease in extraction and processing of copper.

According to the report, Chile, the world’s largest producer of copper, mined 480,275 tonnes of copper in May 2022, which is 1.4% lower than 487,200 tonnes mined in May 2021.

Meanwhile, Chile's Manufacturing Production Index (IPMan) increased 3.5% in May 2022 compared to the same month of the previous year, primarily due to the increase in the production of food products.

Similarly, the Electricity, Gas and Water Production Index (IPEGA) grew 2.9% in May 2022 compared to May 2021 as all three activities that make up this index recorded growth, especially the electricity generation sector.

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