Latam regulatory climate won't deter miners

By Pav Jordan

SANTIAGO, Chile (Reuters)- Neither a growing left-wing tendency nor a tighter regulatory environment can deflect mining industry interest in Latin America as long as sizzling metals prices keep miners' eyes on the mineral prize.

Latin America has seen a gradual shift to the left in recent years as new, different types of leftists assumed power. At the same time the mining regulatory environment has become stricter and more scrutinized.

Simultaneously, prices for precious and base metals are hitting highs near historic levels.

"One could wait for the best government or the best (ore) grade, but at the end of the day it's the land that counts," said Jaime Lomelin, the chief executive at Penoles, the Mexican miner that is the world's top producer of refined silver.

Lomelin, Roger Agnelli, the chief executive of Brazilian mining giant CVRD (RIO.N: Quote, Profile, Research, Stock Buzz)(VALE5.SA: Quote, Profile, Research, Stock Buzz), and top executives from Southern Copper Corp., one of the world's top copper producers, agreed that the best land are still to be found in Latin America.

"South America for Vale do Rio Doce (CVRD) is a very important region geopolitically. My vision is that South America is very important as a supplier to the North American market and Europe," Agnelli said.

LABOR, ENVIRONMENT

The executives told the Reuters Latin America Investment Summit in Mexico City and Rio de Janeiro that they also share concerns about labor.  Continued...