Mining and Energy
The Chilean-Australian relations in this field have developed enormously in recent years. The bilateral mining trade is based on an historic trade relationship that dates back to the 19th century. In the commercial environment one must appreciate the importance Australian coal sales to Chile have had in terms of the trade balance (and how they have pushed the balance in Australia’s favour). To a lesser extent the sales of mining explosives and metals (like for example Molybdenum) from Chile to Australia have impacted on the overall trade balance and must be acknowledged. (See photo)
In the sphere of investment, the relations in the mining field have developed exponentially, primarily due to the participation of BHP Billiton in the Escondida Mine.(see the images below) BHP Billiton has also installed their worldwide headquarters of base metals in Santiago. From there they supervise numerous important projects, including ventures in Australia like the Olympic Dam in South Australia
The Australian investment in Chile is dominated by the Mining sector, which represents 91.7% of the total investment. The next most important industry is that of energy which represents 4% of Australia’s investment in Chile (see the figures on investment). The range of investors in both sectors is varied and includes, along with BHP Billiton, companies such as Ludowici Tecpromin, AMP, Mincom International, Orica, AGL, Pacific Hydro and many more.
Chilean investment in the mining industry has also been generated in Australia, albeit at a much lesser scale. An example of this is the company Conymet-Duratray; situated in Melbourne, the company has a factory which produces rubber floors for the chutes of mining trucks.
In recent months the President of Chile and the Minister for Mining visited Australia and participated in the Mining Conference. Equally important was the visit to Chile of the Australian Minister of Industry, Tourism and Resources (details are available in the news section) and the participation of a group of Australian companies in the Chilean mining exhibitions Expomin and Exponor.