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Argentine economy expanded 9% in 2004; Russian peace mission in Antarctica; Experts looking into Standard Wool plant fire; Soaring profits for Chile's government copper mining.

Argentine economy expanded 9% in 2004

The Argentine economy expanded a nerve breaking 9% last year, above official and private estimates according to the latest release from the National Statistics and Census Institute, INDEC. Particularly encouraging was the fact that the economy grew 9,1% during the last quarter compared to the same period in 2003, boosted by a significant surge in investment and private consumption. GDP in the fourth Q was 2,7% higher than in the third Q, meaning that Argentina's economy has recovered its 1999 level and has a push on growth effect of 3,5% for 2005. During the fourth quarter manufacturing increased 8,8%, services 8,1% and the construction industry 21,7%. Private consumption which represents 65% of Argentina's GDP jumped 9,4% last year while private investment, representing 17,5% of the economy, expanded 34,5%. Gross fixed investment in the fourth quarter grew 23,9% compared to the same period in 2003. "This is mainly because of an 18,6% investment in the construction industry and 33,9% in durable equipments production", reports INDEC adding that the domestic component of durable equipments expanded 13,4% and the imported component 61,7%. INDEC report also gives the definitive growth rate for the 2004 third quarter, 8,7% compared to the same period in 2003. The release of these numbers will force the Argentine government to increase growth estimates for 2005 on which the budget was elaborated from 5,5% to at least 6%. The report confirms the strong recovery of the Argentine economy following the 2002 meltdown which sunk the country into record levels of unemployment and poverty. However in spite of the significant reaction unemployment only dropped from 14,5% in the fourth Q of 2003 to 12,1% in the same period of 2004. While the overall population poverty level dropped from 47,8% in mid 2003 to 40,2% in mid 2004.

Russian peace mission in Antarctica

A team of Russian sportspeople visited Antarctica in a self imposed "peace mission", to promote Moscow for the 2012 Olympics and at the same time establish team records. The team included an astronaut Valeryi Trunov, the Editor in Chief of the Russian "Book of Records" Alexy Svistunov, a cameraman, a journalist and several young athletes chosen from different areas of Russia, including Moscow, Chechnya, Siberia, Caucasus and Murmansk. The group flew from Punta Arenas to King George Island in a King Air form DAP Airways and one of the first things they did was the display of a gigantic 500 metres long poster with the word Peace in Russian, which was registered in the "Russian Book of Records". This was followed by a two kilometres marathon on the ice with the participation of all members of the group and a Chilean student from Punta Arenas specially invited for the occasion. "The idea of the marathon is to emphasize to future generations the importance of keeping Antarctica as a continent dedicated to promote peace and scientific research", said Mr. Svistunov. But the display of the poster and the marathon was also part of the campaign to promote world wide Moscow as host city for the 2012 Olympics. During a press conference in Punta Arenas on their return, astronaut Trunov said the group was specifically chosen to represent transversally all Russian regions and with its Peace message help to eradicate terrorism. Actually on of the members of the group not present because he was in Rome, is a survivor of the bloody hostage siege last year in a school in Beslan, where hundreds of innocents lost their lives.

Experts looking into Standard Wool plant fire

Two chemistry experts from Santiago Police Investigations Department Criminal Laboratory are currently working among the ruins of the Standard Wool Chile S.A. wool processing plant in Punta Arenas which last February 28 was razed by fire. The experts arrived last Monday on request of Punta Arenas Prosecutor Felipe Aguirre who ordered further investigations into the fire which caused several million dollars worth of losses in equipment and wool. Experts are expected to remain several days more given the complexity of their task looking among the burnt remains of the plant for leads which could help determine the exact origin of the blaze. Punta Arenas press reports that the experts are looking for remains of fuels and other inflammable products as well as inspecting the electrical wiring and gas connections. Plant and equipment were insured. Prosecutor Aguirre also met with two of the company's attorneys from Santiago who were informed of the different steps instructed by the local Prosecution Office. "In such cases it's important to determine the cause or causes of the fire, and if there are benefits for the policy holder", said Prosecutor Aguirre.

Soaring profits for Chile's government copper mining

Chilean government owned copper corporation Codelco pre tax profits soared 444% to 3,3 billion US dollars in 2004, the highest in the company's history, said Francisco Tomic Corporate vicepresident. The spectacular performance was the result of higher copper prices, higher sales volume and higher prices for copper mining by-products, particularly molybdenum, added Mr. Tomic. The company also benefited from the withholding in 2003 of 200,000 tons of copper when market prices averaged 80 cents the pound. The stock was sold last year when red metal prices reached 1,30 US dollars/lb, the highest since 1995. According to Mr. Tomic net profits after income taxes and a statutory payment to Chilean Armed Forces, reached 1,13 billion US dollars, equivalent to a 1,170% over the 89 million US dollars of 2003. Codelco which is the world's largest copper producer registered revenues of 8,2 billion US dollars in 2004, 117% above 2003, mainly because of the sale of 2.3 million tons of copper and molybdenum sales of one billion US dollars. Codelco actually increased molybdenum production by 50% to 32,000 tons last year. Mr. Tomic said Codelco's production could be slightly higher in 2005 but would essentially remain in the same range as last year. The company expects cooper prices to average 1,30 US dollars/lb, however they could drop slightly in the second half of 2005 in response to an expected economic deceleration in industrialized countries. Codelco has 131 years reserves of current production sales, stressed Mr. Tomic who revealed that the company contributes about 15% of government revenue. Codelco has forecasted investments equivalent to 1,4 billion US dollars this year, some of which will be financed by floating bonds.