• This is the largest amount ever authorized by the Foreign Investment Committee and represented an increase of 4.0%

• on the previous record of US$13.3 billion • in 2010.

In 2011, the Foreign Investment Committee authorized the entry of direct foreign investment (FDI) for US$13,790 million, setting a new historical record, announced today the Committee’s Executive Vice-President, Matías Mori.

“This has been a very good year for Chile as regards foreign investment,” said Mori. “We have approved a record level of investment applications, with an increase of 4.0% on our previous record in 2010.”

In addition, Mori noted that, in 2 011, Chile for the first time ranked among the world’s top 20 FDI destinations, up by seven places on the previous year, according to the United Nations World Investment Report. “Foreign investors value the good conditions that Chile offers for doing business,” said Mori. “Our country is known for its reliability, clear rules and excellent

opportunities for investment as is borne out by different International rankings.”

This is, he pointed out, particularly important in the current context of international economic

instability. “In a world of ever more intense competition to attract foreign investment, Chile is seen by overseas investors as a reliable destination and that is very important because foreign investment plays a crucial role in Chile’s economic development through benefits that include job creation, innovation, the transfer of technology, training and the development of support industries,” explained the Executive Vice-President of the Foreign Investment Committee.

In 2011, the Foreign Investment Committee received 88 investment applications of which 42 corresponded to new initiatives (equivalent to 64.2% of the total amount authorized) and 46 to capital increases.

Increased interest of Asian investors

The countries that led the investment authorized in 2011 were Canada (with 20 projects for US$8,178 million), Japan (6 projects for US$1,599 million), Spain (10 projects for US$986 million) and the United States (22 projects for US$766 million).

www.foreigninvestment.cl - January 2012

RECORD OF US$13.8 BILLION IN FOREIGN INVESTMENT AUTHORIZED IN 2011

Investment authorized under DL 600, 2011By country of origin(US$13,790 million)

CaymanIslands

3.6%

China1.5%

Sweden1.5%

Others1.6%Korea

1.6%

United States5.6%

Australia4.4%

nSpai7.1%

Canada59.3%

Switzerland2.2%

Source: Foreign Investment Committee (www.foreigninvestment.cl)

Japan11.6 %

Manufacturing sector

However, Matías Mori also highlighted the growing interest of Asian investors in Chile, noting that, for the first time in 2011, three Asian countries were among its ten largest sources of authorized investment: Japan (11.6%), Korea (1.6%) and China (1.5%).

“This is particularly noteworthy since historically Asia has accounted for only 4.1% of FDI in Chile,” he pointed out, “and shows that the Committee’s efforts to position Chile in the minds of Asian businesspeople are beginning to bear fruit.”

Distribution by sector and region of Chile

In terms of sectors, authorized investment in 2011 was led by the mining industry (29 applications for US$9,668 million), followed by services (27 applications for US$2,299 million), the electricity, gas and water industries (5 applications for US$810 million) and the transport and communications sector (5 applications for US$457 million).

“Although Chile is an eminently mining country and this is the industry that has traditionally attracted most FDI, there are other sectors such

as services and manufacturing that are also highly attractive to overseas investors, with 27 and 14 applications, respectively, presented in 2011,” reported Mori.

In terms of its destination within Chile, authorized investment in 2011 was led by the Atacama Region which, with 13 applications, accounted for 56.4% of the total. It was followed by multi-region projects with 17.5% (26 initiatives), the Antofagasta Region with 12.3% (8 initiatives) and the Santiago Region with 8.5% (22 initiatives).

Source: Foreign Investment Committee, December 27

The principal projects authorized in the mining sector corresponded to the Canadian developers of the Cerro Casale project which include Barrick. Important applications in this sector were, however, also received from Asian companies including Sumitomo (Japan) for the Sierra Gorda project, Hebei Wenfeng Industrial Group (China) for the San Fierro project, LG International (Korea) in Geopark, Korea Resources Corporation (Korea), Samsung C&T Corporation (Korea) and Sino Union Mining Investment Holding (China).

In the services sector, important applications were presented by Spain’s Abertis Logística and Fundación BBVA, Canada’s Dorel Chilean Enterprises and Peru’s Graña y Montero while, in the electricity, gas and water industries, important applications were received from Australia’s Pacific Hydro and Origin Energy as well as from Canada’s Ontario Teachers’ Pension Plan and Quadra FNX Water Holdings and from US-based GGE.

In manufacturing, applications included Sweden’s Electrolux, France’s Danone, Argentina’s Quilmes and, from the United States, Advanced Recyclin Technology, ESCO Corporation and Mosaic Fertilizantes while, in the case of the communications sector, they included US-based Nextel and VTR and, in the transport sector, Canada’s Brookfield Americas Infrastructure and Nova Gas Sur.

Principal initiatives authorized

Mining sector Services sector

a

Santiago8.5%

Multi-region17.5%

Antofagasta12.3%

O’Higgins3.4%

Others0.3%

Atacam

56.4%

Magallanes &

Chilean Antartic1.2%

Bío-Bío0.4%

Source: Foreign Investment Committee (www.foreigninvestment.cl)

Investment authorized under DL 600, 2011By region of Chile(US$13,790 million)

Investment authorized under DL 600, 2011By sector

(US$13,790 million)

Services16.7%

Transport &communications

3.3%

Manufacturing2.8% Others

1.6%

Mining70.1%

Electricity, gas & water5.9%

Source: Foreign Investment Committee (www.foreigninvestment.cl)

The Executive Vice-President of the Foreign Investment Committee, Matías Mori, and the Executive Director of Peru’s ProInversión investment promotion agency, Jorge Alejandro León, signed a bilateral cooperation agreement under which the two agencies will work together to attract investment and promote business opportunities.

The two agencies have undertaken to mutually support the promotion of their countries’ respective investment opportunities and to maintain a constant flow of information about the business climate, economic sectors and their experience and best practices in the promotion of foreign direct investment (FDI).

According to Mori, the agreement is a concrete step towards the goal of increasing and diversifying Peruvian investment in Chile.

Between 1974 and 2010, Peruvian companies invested a total of US$420 million in Chile through the country’s DL 600 Foreign Investment Statute. “Under our cooperation agreement with ProInversión, we will be seeking to guide and facilitate the access of the growing number of Peruvian businesspeople who would like to do business in Chile and this will, undoubtedly, bring enormous benefits for the integration of the two countries,” said Mori.

ProInversión is one of Latin America’s best investment promotion agencies and, earlier this year, was selected by the United Nations Conference on Trade and Development as the world’s best agency in 2011.

This new agreement forms part of the Foreign Investment Committee’s policy of signing agreements on cooperation and the exchange of experiences with

leading investment promotion agencies around the world. The agencies with which it has agreements include Invest Hong Kong, the Japan Institute for Overseas Investment (JOI), the agency for China’s Chongqing province and the China Investment Promotion Agency (CIPA).

China and Latin America

During his visit to Peru, the Executive Vice-President of the Foreign Investment Committee participated in the V China-Latin America Business Summit. Invited by Peru’s Foreign Minister Rafael Roncagliolo, Mori spoke in a panel on “Latin American Integration, Trade Negotiations and a New Dimension for China-Latin America Cooperation” which was chaired by Peru’s Ambassador to China, Gonzalo Gutiérrez.

The Summit on “Inclusive Growth: A New Chapter for the China-Latin America Partnership” took place on November 21-22 in Lima and was inaugurated by President Ollanta

Humala and the Vice-Chairman of the China Council for the Promotion of International Trade (CCPIT), Zhang Wei. During the event, over 30 experts and authorities addressed a 1,000-strong audience of Chinese and Latin American businesspeople.

In a bid to examine different options for deepening political, economic and commercial relations between the two regions, the event comprised principally plenary sessions on topics that included global trends, competitiveness, negotiations, emerging opportunities, the food industry and sustainable development and also provided opportunities for one-to-one business meetings.

In 2010, trade between China and Latin America reached over US$179,000 million while Chinese companies invested US$15,000 million in Latin America.

Source: Foreign Investment Committee, December 1

FOREIGN INVESTMENT COMMITTEE, PROINVERSIÓN SIGN AGREEMENT TO INCREASE PERUVIAN INVESTMENT IN CHILE

Chile’s Central Bank kept its benchmark interest rate unchanged for the sixth straight month as slowing global growth shows little sign of damping inflation and demand in the world’s biggest copper producer.

The four-member policy board, led for the first time by new bank President Rodrigo Vergara, held the overnight rate at 5.25% today, matching the forecast of 16 of 20 analysts surveyed by Bloomberg. Four expected a 0.25-point cut.

After raising interest rates faster than any major economy behind Belarus in the first half, Banco Central de Chile has space to stimulate growth if the European debt crisis causes internal consumption and consumer price gains to slow. Still, after inflation quickened for the fourth straight month in November to threaten their annual target, policy makers had little choice but to keep the rate unchanged.

“There still are some significant inflationary pressures, and in addition there aren’t clear indications of a major deceleration in domestic demand,” Alejandro Puente, an economist at Banco Bilbao Vizcaya Argentaria SA in Santiago, said by phone. “A rate reduction doesn’t seem prudent yet. The central bank must wait until there’s more evidence that the international scenario is having a negative impact on Chile.”

‘Consequences’

Policy makers will lower the rate to 5% in their next meeting and 4.5% by May as economic growth slows from 6.2% this year to 4.2%in 2012, according to the median estimate of 61 economists in a December 9 Central Bank poll.

“In recent months a more adverse external outlook has developed, which will probably have consequences for growth and inflation in Chile, as well as for the orientation of monetary policy,” policy makers said in a statement accompanying today’s decision. Local financial market conditions have

become “somewhat more restrictive” as international conditions remain tight, they wrote.

‘No Evidence’

“There are signals that there is a deceleration, but we have no evidence that it has been stronger than what we were expecting,” Manuel Marfan, the Central Bank’s vice president, said in an interview last week. “The economy has all the signals that it is still in the neighborhood of full employment and potential output.”

Source: Bloomberg, December 13

Chile’s government wants men in the South American country to take off their ties to help fight global warming, hoping the campaign will save on air conditioning as summer starts in the southern hemisphere.

CHILE KEEPS BENCHMARK RATE AT 5.25% AS INFLATION OUTWEIGHS EUROPE CRISIS

TAKE OFF THAT TIE TO SAVE ENERGY, CHILEAN MEN TOLD

Available in English and Spanish on the FIC’s website.

The Foreign Investment Committee has released a new publication “Chile: Opportunities in Tourism” which seeks to guide and support potential foreign investors interested in doing business on infrastructure and services within the industry of tourism, entertainment and free time.

Chile is a privileged country in terms of its diversity of geography and climate. Within this wealth of variety, tourists can find landscapes that range from the world’s driest

desert to glaciers and ice fields. The stability and safety for which Chile is recognized internationally have not only encouraged visitors but have also transformed it into an outstanding destination for foreign investment.

One of the government’s goals is to strengthen tourism, positioning it as the country’s third most important industry up from fifth at present. To this end, its aim is to reach 4 million visitors in 2014, up from 2.7 million in 2010. In this task, foreign investment has a crucial role to play. This publication is bilingual and it is available to download in PDF format on the Publications section of our website www.foreigninvestment.cl.

Source: Foreign Investment Committee, December 13

FOREIGN INVESTMENT COMMITTEE RELEASES NEW BOOK “CHILE: OPPORTUNITIES IN TOURISM”

“Let’s all take our ties off this summer to save energy,” Economy Minister Pablo Longueira says in television spots airing around the country.

In the commercial, he undoes the knot of his pink and white tie and whips it off with “gusto”, unbuttoning the top of his shirt and smiling. A tie-less energy minister and other senior government officials also appear in the TV spot.

Mornings and evenings are still cool in Chile’s capital Santiago but the midday sun has already become quite strong and will remain so until fall begins in March.

Source: Reuters, December 14

The Chilean government is not sitting idly by watching the storm brew in Europe.

Finance minister, Felipe Larraín, has announced the injection of US$1.7 billion into an off-shore economic and social stabilization fund (known in Spanish by the acronym FEES) as well as into a pension reserve fund (FRP). This pushes the total available in these two contingency funds to US$20 billion, a significant safety net when added to the Central Bank’s US$36 billion in international reserves.

“We can do our best to cushion the effects of external shocks, to somehow protect the most vulnerable, but we cannot completely prevent what may happen outside, because we are not shielded or immune to international economic problems,” Larraín was quoted by the press as saying at a regional meeting of finance officials.

The finance ministers of Chile, México, Uruguay, Perú and Colombia along with the IMF’s western hemisphere director Nicolás Eyzaguirre met last week in Santiago to discuss the international financial crisis and their respective plans to combat potential European contagion. While the Latin American nations are

growing robustly at a collective 4.5% this year, the upward thrust is expected to slow a bit next year as the downturn in the industrialized world takes its toll on emerging markets. Still, with 4% growth expected for 2012, the region is viewed as part of the global solution instead of the problem.

A coordinated regional contingent plan is unrealistic, according to Larraín, but the government’s plan to increase regional cooperation and trade is in order to protect themselves. Thanks to more diversified investment and trading partners, namely China, most regional economies are less vulnerable to European events. Chile, in particular, sends 25% of its exports to China and has significantly reduced its European exposure over the last 20 years.

More than counter-cyclical funds, however, is needed if Chile hopes to achieve sustainable economic and social development. At the closing of the regional ministerial event, Chilean president Sebastián Piñera highlighted the need for improvements in human capital, investments in science and technology, and strengthening of social equality.

Source: The Financial Times, December 15

The Malaysia-Chile Free Trade Agreement (MCFTA) has been approved by the National Congress of Chile and is expected to enter into force January 1, 2012, said Ambassador of Chile to Malaysia Christian Rehren.

Rehren said the FTA was approved by the Senate of Chile last December 14 after getting approval from the Chamber of Deputies in October.

“It was approved by the plenary senate smoothly with consensus support. There were no enquiries and no complaints. It is

now in the administrative process and will be published to the public in the next few days. It should take effect January 1, 2012. This is a milestone in terms of bilateral relations between Malaysa and Chile,” he told Bernama in an interview.

Rehren said the decision should be applauded because it was made in the midst of the crisis that was happening in Europe and the United States.

“I would think that this decision must be applauded because it comes in a very special moment. It gives a relief that not everything is so bad. The crisis never stopped us and we have been able to speed up things.” The agreement followed the conclusion of negotiations between Malaysia and Chile in May 2010 in Santiago after several rounds of negotiations, which began in June 2007.

“This is the first bilateral FTA that has been signed between Chile and an Asian country. For Malaysia, it is also very relevant because it is the first bilateral FTA signed with a Latin American country. It means a lot because it comes with a value on principle approach, deals with free trade and politics. It means more than trade itself,” he said. He said the FTA went beyond trade between the two countries as it represented a political decision that was taken years ago by the two countries according to their own trade policies, development of strategies, potential future and perspectives.

“We are confident about the potential of the FTA. We should be able to record a high level of trade. Even without the FTA, Chile’s exports to Malaysia have been on the increasing trend,” Rehren said. Chile’s export to Malaysia increased from US$73 million in 2007 to US$206 million in 2010. The country’s export to Malaysia for this year is also expected to increase from US$206 million recorded in 2010.

From January to September 2011, Chile’s exports to Malaysia stood at US$165 million and strong numbers are expected for rest of the year.

CHILE BATTENS DOWN THE HATCHES

MALAYSIA-CHILE FTA APPROVED BY NATIONAL CONGRESS OF CHILE

Rehren said Chile expected growth in products like fresh fruit, seafood, wines and milk-related products such as yogurt in 2012 following the implementation of the FTA.

From the day of entry into force of the agreement, 96.5% of trade between both countries will be totally liberalized. Furthermore, 98% of the products are covered by the agreement.

Once the agreement enters into force, Chilean products such as beef, fish, fresh fruit, powdered milk, yogurt, cheese and other daily products will enter Malaysia duty free.

Meanwhile, 95% of total Malaysia exports to Chile will be covered by preferential tariff rates.

Source: Bernama, December 17

Chile and Argentina will build an interoceanic corridor between the two countries in 2012, project director Eduardo Rodríguez said.

The “Aconcagua Bi-Oceanic Corridor” between the Atlantic and the Pacific Oceans is a passage that includes a 52-km railway tunnel connecting the Chilean city of Los Andes and Mendoza city in Argentina.

Developed by an international consortium headed by Argentine company Corporation America, the project is estimated to need an investment of US$3 billion.

The passage is expected to promote the economic ties between Chile and Argentina, and those between Mercosur (Common Market of the South) and the Asia-Pacific countries.

The construction of the corridor will only start in December 2012, as some administrative issues are still pending, Rodríguez said.

Currently, the main transport route between the two countries is a mountain pass called Paso Internacional Los Libertadores, which is impassable several times a year due to its design and weather conditions, leading to high costs and low efficiency.

Source: Xinhua, December 17

Hong Kong and Chile have agreed to start negotiations on a Free Trade Agreement (FTA) between the two sides in early 2012, a Government spokesperson announced.

“A FTA between Hong Kong and Chile will be instrumental in fostering a closer economic relationship between the two sides. It is in Hong Kong’s interest to negotiate an FTA with Chile to tap business opportunities and potential in this emerging market, and also the opportunities it provides as a gateway to the South American region,” the spokesperson said.

Hong Kong and Chile’s FTA negotiations aim to be comprehensive in scope, covering the following major areas and related issues:

(a) Removal or reduction of tariffs;

(b) Liberalisation of non-tariff barriers, including technical barriers to trade, sanitary and phytosanitary measures, anti-dumping, safeguards and countervailing measures;

(c) Flexible disciplines on rules of origin which would facilitate bilateral trade;

(d) Customs facilitation procedures;

(e) Liberalisation of trade in services; and

(f) Liberalisation as well as promotion and protection of investment.

Among the South and Central American economies, Chile ranked fifth in GDP in 2010, but second in trade in goods and third in trade in services. While the South and Central American economies took up about 6 per cent of world GDP, their share

of world trade in goods and services was only around 3.4 to 3.8 per cent.

This suggests that the South American region has latent potential and provides new business opportunities.

Bilateral trade between Hong Kong and Chile has been growing steadily, which suggests that there should be scope for further enhancement of the economic ties between the two places.

Bilateral trade in goods between the two economies amounted to HK$6.061 billion in 2010, representing an average annual growth rate of 7.5 per cent when compared with 2004.

Bilateral trade in services between Chile and Hong Kong amounted to HK$573 million in 2009, representing an average annual growth rate of 7.6 per cent when compared with 2003.

Source: 7th Space, December 19

Cebu Chamber of Commerce and Industry (CCCI) officials see a big potential for investment partnerships between local and Chile businessmen after they signed a chamber sisterhood agreement with the National Chamber of Commerce, Services and Tourism of Chile this month.

CCCI president Samuel Chioson and trade mission committee chairperson Melanie Ng said their counterparts in various fields and industries in Chile had shown interest in investing in Cebu.

A group of businessmen from Chile will be coming to Cebu next year to meet their local counterparts especially those in the real estate industry.

Ng said they found out during the business matching event in their Chile visit that businessmen there wanted to sell their products to the Philippines.

CHILE AND ARGENTINA TO BUILD INTEROCEANIC CORRIDOR

HK AND CHILE TO BEGIN NEGOTIATIONS ON FREE TRADE AGREEMENT

CHAMBER OFFICIALS OPTIMISTIC OF GETTING CHILE INVESTMENTS

The products include wines, pet food, real estate, machineries especially in food processing and bakery equipment, mining, dairy products and more that are related to the food industry.

“From Cebu, they are also interested at our furniture, gifts and dried and processed fruits. So we see a lot of potential with that trade mission despite us being hesitant at first knowing they are very far and there might be problems with logistics,” said Ng.

With a potential market in South America, Chioson said they were confident that they could still help open other untapped markets in the world to help Cebu’s major industries cope with the effects of the economic turmoil in Europe and the United States of America.

Source: Cebu Daily News, December 21

Chilean President Sebastián Piñera aims to vault his country into the ranks of developed nations by 2020. He talked to Bloomberg Markets magazine editor Ronald Henkoff and Bloomberg News Santiago bureau chief James Attwood on December 6.

Defeating Poverty

“Chile, which was the poorest Spanish colony in Latin America, is now the country with the highest per capita income. Our goal is to become a developed country and defeat poverty before the end of this decade. We need to do many, many things to achieve that.

“First of all, we need to grow at least 6% per year in order to reach US$25,000 by 2020, which is roughly the average per capita income of most OECD countries. We need to create 1 million jobs to defeat underdevelopment and end poverty. The old pillars -to have a stable democracy

and market economy that is integrated with the world- are not enough.

“We will have major education reform to increase the quality and the coverage of our system. We must increase investments in science and technology -we will need to double that as a percentage of GDP- as well as promote innovation and entrepreneurship. We also must improve income distribution.

“We are on track, because the average growth rate during the 20 months we have been in power is 6.5%. The average growth rate of the former government was 2.7%. We aim to create 1 million jobs in four years, which with our labor force of 7.5 million, would be the equivalent of 15 million jobs in the U.S. We have already created 600,000 jobs, so we are on track there as well.

“We need to increase productivity to grow 6% a year. We are moving in the right direction: Productivity was negative in 2009, zero in 2010 and will be positive in 2011.”

‘A Very Good Position’

“We are in a very good position because we have solid fiscal accounts. Our public debt is negative. We are creditors to the world, not debtors.

“Chile is a very open economy, and therefore we will be hit by the global deceleration. Our terms of trade are deteriorating, and of course, the confidence of consumers and investors will be affected. That’s why we’re predicting that the growth rate for 2012 will be between 4% and 5%, much lower than the 6.5% that we are expecting for 2011.

“We are preparing what we call a contingency plan because we have the resources to undertake a pro-growth fiscal policy. We also can do something in our monetary policy by lowering interest rates. We have US$15 billion in our foreign savings accounts that are designed specifically to compensate for bad years like the one we will face in 2012.”

Chile’s Investment Climate

“Chile is a very open country in every sense. We have huge opportunities to invest in Chile in many, many different sectors: energy, mining, agriculture, manufacturing and many others.

“We have a very stable system, a very stable democracy, and we are very much committed to the rule of law, which is important because that gives certainty and stability that the rules will not be changed arbitrarily. I would like to send the message to foreign investors that they are most welcome in Chile and that they have huge opportunities.”

Source: Bloomberg, December 22

PIÑERA SAYS CHILE WILL BE FIRST DEVELOPED LATIN AMERICA NATION

CHINA’S GOLDWIND IN CHILEAN TURBINE SUPPLY DEAL

SUNGARD ESTABLISHES TRADING NETWORK HUB IN CHILE

COLOMBIA’S GRUPO SURA SAYS ING PURCHASE APPROVED BY CHILE

KENTZ SEEKS PROJECTS IN CHILE, PERU, MOZAMBIQUE AS PROFIT RISES

Kentz Corp., an Irish-based oil and gas engineering company, is seeking businesses in new regions on expectations of a 10% increase in profit next year.

Kentz is looking to expand in Canadian oil sands and is examining plans to enter new regions such as Mozambique, Chile and Peru, Chief Executive Officer Hugh O’Donnell said.

Kentz had an order backlog of about US$2.38 billion as of October 31 and is pursuing almost US$10 billion of potential contracts, O’Donnell said.

Source: Bloomberg, December 9

Xinjiang Goldwind Science and Technology, China’s second-largest maker of wind power equipment, said it won a contract to supply 23 wind turbines to a wind farm project in Chile.

The contract represents Goldwind’s second supply deal in South America and will have a combined capacity of 34.5 megawatts, the company said in a statement without giving the deal’s financial details.

China’s top wind turbine makers are increasingly looking to export their equipment overseas to boost sales amid sliding turbine prices and challenging market conditions in their home country.

Goldwind will supply low wind-speed turbines to Chile’s wind farm project. The company has begun mass production of its permanent magnet direct-drive low-speed wind turbines this year to penetrate regions and markets with low wind speeds.

Source: Reuters, December 9

SunGard has established a SunGard Global Network hub in Santiago, Chile. SGN provides global order routing, market data and associated services on 120 markets worldwide, linking 2000 asset managers and 500 broker dealers. The Santiago hub, SunGard’s third in Latin America after Mexico City and Sao Paulo, will provide international investors with access to Bolsa de Comercio de Santiago, Chile’s equity and derivatives exchange. In addition, financial institutions in Chile will be able to access the SGN brokerage community.

SunGard will also offer Valdi Market Access to Chile, which delivers Software-as-a-Service (SaaS) based connectivity to markets worldwide through SGN. This direct market access service gives exchange members and their clients the ability to trade on electronic markets from any application connected to SGN. It is fully managed by SunGard, helping reduce their infrastructure and support costs. For Bolsa de Comercio de Santiago (BCS), the Valdi Market Access servers will be directly co-located at the exchange, offering low latency services.

Mr. Andrés Araya Falcone, chief information officer of the Bolsa de Comercio de Santiago, said, “Chile continues to grow, and the region is focused on being an important player in the global economy. SunGard is supporting this growth by providing electronic trading solutions and global connectivity to market participants in Chile, which will help our exchange members find new investment opportunities. In facilitating exchange connectivity, this should also help attract new firms to the Bolsa de Comercio de Santiago.”

Danielle Tierney, an analyst at Aite Group, said “opening a new hub in Santiago is a very strategic placement for SunGard. Santiago is the third

largest individual exchange in Latin America by market capital and volume, in addition to being a part of the MILA integration of the Andean exchanges. By establishing this additional point of connectivity, SunGard has essentially made its SGN hub into a pan-LatAm offering.”

Source: PRWeb, December 13

Grupo de Inversiones Suramericana SA, parent company of Colombia’s biggest bank, said Chile’s securities regulator approved its acquisition of ING Groep NV’s assets.

Source: Bloomberg, December 16

Chile kept its score of 7.2 in the new edition of the Corruption Perception Index 2011 of Transparency International. The country is the less corrupt of Latin America and it is

above United States. With this score, Chile is on 22nd place this year.

The 2011 corruption perceptions index measures the perceived levels of public sector corruption in 183 countries and territories around the world. Four countries and territories besides North Korea are included for the first time: the Bahamas, St Lucia, St Vincent and the Grenadines, and Suriname.

The report says that “public outcry at corruption, impunity and economic instability sent shockwaves around the world in 2011. Protests in many countries quickly spread to unite people from all parts of society. Their backgrounds may be diverse, but their message is the same: more transparency and accountability is needed from our leaders.”

Source: Transparency International, December 1

Investments in the Chilean mining sector will total US$80 billion in the 2011-18 period, according to the country’s private miners association Sonami.

The figure was revised up by the association from a previous estimate of US$70 billion in the same period.

“The new estimate is the result of a combination of projects that have been added to the pipeline -as they have advanced to a greater stage of development- together with increased capex for some other projects,” Sonami’s president Alberto Salas told journalists at a press conference.

Of the total figure, US$20 billion will be invested by state copper producer Codelco with private companies investing US$60 billion.

Most of the investments will be focused on construction (US$36 billion) and the purchase of machinery and equipment (US$32 billion), according to Sonami. Half of the remaining US$12 billion will be spent on engineering services.

From 2001-10, US$40 billion was spent on projects in the local mining sector, according to Salas.

Northern regions II and III will receive the bulk of the investments, with US$28.3 billion and US$25.3 billion, respectively.

Human resources

The huge pipeline of new projects will create 80,000 direct jobs in the mining industry, including professionals, technicians and operators, according to the Sonami president.

“This poses a huge challenge for mining companies, since the lack of skilled human resources is already an issue for the industry,” Salas said.

“We need to generate incentives so that new generations see the mining sector as an attractive alternative for their professional development, as well as accelerating the incorporation of women in the industry,” he added.

MINING INVESTMENT UP TO US$80 BILLION BY 2018, SONAMI SAYS

CHILE CONFIRMS ITS PLACE AS THE LESS CORRUPT COUNTRY OF LATIN AMERICA

Source: Business News Americas, December 20

Source: Transparency International (www.transparency.org).* Out of 183 countries.

5 / 9.2

1 / 9.5

10 / 8.7

12 / 8.4

22 / 7.2

24 / 7.1

25 / 7.0

31 / 6.2

36 / 5.8

57 / 4.4

64 / 4.1

73 / 3.8

154 / 2.2

New Zealand

Singapore

Canada

Hong Kong

Chile

United States

Uruguay

Spain

Israel

Czech Republic

South Africa

Brazil

Paraguay

Corruption Perception Index 2011(Selected economies, ranking and score)*

A Chilean business school, Pontificia Universidad Católica de Chile, has climbed to the top spot in Latin American ratings of the QS Global 200 Business Schools Report 2012 with an average GMAT score of 500 points. Furthermore, Universidad de Chile is in the fourth position this year.

Pontificia Universidad Católica de Chile has made a seven-place climb from eighth place to first and Universidad de Chile making a six-place jump to fourth position. In Pontificia Católica the percentage of female students reaches

10% and the ratio of international students is 10%.

Chile’s strong commitment to free trade has stimulated large foreign investment. Its market-oriented policies have created significant opportunities for foreign investors to participate in the country’s steady economic growth. Employers are attracted to the future prospects this provides, and therefore need local business leaders to ensure those prospects become reality. This explains why both Chilean business schools featured last year have jumped significantly up the Latin American ratings.

Within the Latin American region, 10 schools have qualified for the QS Global

200 Business Schools Report. Just few business schools in Latin America have been successful in developing an international reputation, and as a result are unable to attract as many international students as business schools in Asia, a region which only a decade ago could more easily be compared in terms of the quality and availability of MBA education.

This year, the QS Global 200 Business Schools Report consists of 82 schools in North America, 67 schools in Europe, 36 schools in Asia-Pacific and 5 schools in Africa and the Middle East.

Source: QB TOP MBA, December 13

CHILEAN UNIVERSITIES LEAD RANKING OF BUSINESS SCHOOLS IN LATIN AMERICA

QS Global 200 Business Schools Report 2012Latin American MBA rankings

Source: QS Top MBA (www.topmba.com).

School Rank

Pontificia Universidad Católica de Chile 1

Business School Sao Paulo (BSP) 2

Fundação Getulio Vargas, São Paulo 3

Universidad de Chile 4

EGADE-Tecnologico de Monterrey, Campus Monterrey 5

IAE Business School, Universidad Austral 6

INCAE Business School 7

ESAN, Escuela de Administracion de Negocios para Graduados 9

IPADE Business School 10

Chile ranked 31st globally in this year’s Financial Development Index, edited by the World Economic Forum (WEF). In Latin America, Chile has the second best business environment after Brazil, which tops the sub-ranking and is ranked 30th in this edition. Beating United States, Hong Kong leads the overall ranking 2011 after staying in 4th position in 2010.

According to the publication, Chile experiences both a stable banking system (4th place) and a low risk of sovereign debt crisis (5th). Its “strength resides in the fact that it maintains development advantages in areas such as taxes (10th) and contract enforcement (23rd)”. Furthermore, the country shows “relative weakness in IPO activity (42nd), which, in turn, drags down its overall score in non-banking financial services (33rd)”.

The Financial Development Report measures and analyses the factors enabling the development of financial systems in 60 of the world’s leading financial systems and capital markets. The Report defines financial development as the factors, policies, and institutions that lead to effective financial intermediation and markets, as well as deep and broad access to capital and financial services.

Source: QB TOP MBA, December 13

CHILE RANKED 31ST IN WEF’S FINANCIAL DEVELOPMENT INDEX 2011

Source: World Economic Forum (www.weforum.org).* Out of 60 countries.

2

1

8

12

19

30

31

34

36

40

43

45

47

53

Hong Kong

United States

Japan

France

China

Brazil

Chile

Czech Republic

India

Peru

Turkey

Colombia

Hungary

Argentina

Financial Development Index 2011(Selected economies, ranking)*

Canadian DBRS agency confirmed its ratings on the Republic of Chile’s long-term foreign debt at A (high) and long-term local currency debt at AA (low), and changed the trend on both ratings to Positive from Stable. The ratings are underpinned by Chile’s sound macroeconomic policy framework, strong

public balance sheet and stable political institutions. The Positive trends reflect Chile’s sustained strong economic performance and demonstrated capacity to weather adverse shocks.

Sound macroeconomic policies, openness to trade and investment, and a well-developed financial system have contributed to Chile’s strong economic performance and improved living standards. From 1990 to 2010, the economy grew at an average rate

of 5.1%, real income per capita more than doubled and poverty declined from 39% to approximately 15%. Moreover, Chile’s high national savings rate, which averaged 23.1% of GDP from 1990 to 2010, finances high levels of domestic investment and limits the economy’s reliance on net external borrowing

Source: DBRS Inc., December 20

DBRS CONFIRMS CHILE AT A (HIGH), CHANGES TREND TO POSITIVE ON ECONOMIC STRENGTH

Source: QS Top MBA (www.topmba.com).

Pillar Rank

Institutional environment 27

Business environment 23

Financial stability 7

Banking financial services 39

Non-banking financial services 33

Financial markets 44

Financial access 28

Chile in the Financial Development Index 2011

HIGHLIGHT PROJECT

Improvement and maintenance, Road D 43 – Coquimbo

Project to implement different road connections in the Coquimbo Region, involving close to 86 kilometers of paved roads. The project comprises four segments. The estimated Investment reaches US$200 million and the starting date is programmed to November 2011. Bids must be presented in the first half of 2012.

MORE INFORMATION Mónica Zucker, monica.zucker@mop.gov.cl, tel: +56-2-4496116.

ABOUT USUS

WHAT IS THE FOREIGN INVESTMENT COMMITTEE ?

The Foreign Investment Committee (FIC) is the agency that represents the State of Chile in its dealings with foreign investors and helps to position Chile as a highly attractive destination for foreign investment and international business through its role in matters related to the administration and communication of the corresponding legal norms, the development of promotional activities of different types and the preparation of information concerning foreign inves-tment for investors and potential investors.

Is formed by the Ministers of Economy (who acts as president of the Committee), Finance, Foreign Relations and Plan-ning as well as the president of the Central Bank. Other ministers responsible for specific economic sectors are also in-vited to participate in meetings whenever deemed necessary. It’s headed and managed by an Executive Vice-President who is appointed by the President of the Republic.

WHAT THE FOREIGN INVESTMENT COMMITTEE DOES? Provides general information about Chile, its economic and social environment, legal framework and policies on Foreign Direct Investment. Provides information on how to begin the process of setting up a business in Chile as well as the procedures and regulations to which any investor must adhere for bringing foreign direct investment (FDI) into Chile. Coordinates business missions abroad, organizes seminars and conferences. Publishes regular reports about Chile's business climate and about specific investment opportunities in private and public projects.

CONTACT US

www.foreigninvestment.cl / cie@foreigninvestment.cl / tel. +56-2-6984254.

LEGAL DISCLAIMER: The information contained in this document is for the purposes of information only and the particular conditions of each specific potential

project may vary from those set out here. The contents of this document should in no way be interpreted as a legally binding obligation of the Republic of Chile

or any other state agency that participates in any way in the processes of administrative approval or of any other nature corresponding under Chilean law. This

information in no way constitutes an authorization to start or exercise the economic activity potentially intended to be developed. The resulting agreements

will be governed and interpreted exclusively according to the laws of the Republic of Chile, their related regulation and the national policies applicable to each

particular case

Investment Opportunities in Chile

The items contained in this newsletter are extracts from articles and reports published in the international press.