Mining
Thanks to an extraordinary mineral wealth and over a century of experience in mining, Chile has one of the largest and most advanced mining sectors in the world. Mining drives Chile’s economic growth, accounting for 7.88% of the 2004 national GDP (Central Bank of Chile) and employing around 6% of the workforce.
Major Chilean Exports of Minerals 1996-2003 (US$Million) |
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|
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
Copper |
6851.0 |
5323.7 |
6163.8 |
7286.3 |
6525.9 |
6279.3 |
7553.0 |
Gold |
409.4 |
278.5 |
304.1 |
343.1 |
268.1 |
256.5 |
301.6 |
Molybdenun |
236.5 |
203.4 |
167.2 |
180.7 |
173.3 |
248.5 |
|
Steel |
149.5 |
164.0 |
126.4 |
142.0 |
135.6 |
139.9 |
135.2 |
Silver |
127.1 |
130.1 |
124.0 |
90.0 |
90.7 |
90.4 |
94.5 |
Zinc |
17.2 |
7.7 |
9.8 |
13.7 |
7.9 |
11.1 |
11.2 |
Nitrate |
76.6 |
76.1 |
73.8 |
62.8 |
64.5 |
67.5 |
|
Salt |
28.1 |
20.6 |
25.5 |
22.2 |
37.8 |
29.0 |
43.9 |
Others |
204.0 |
250.9 |
216.3 |
227.1 |
204.3 |
218.7 |
|
Source: Central Bank and The Chilean Commission for Copper |
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Among the vast array of mining products available in Chile, copper is the stand out. 4 687 metric tons of copper were produced in 2003, with exports for the same year totalling US7.55 billion. Other minerals that also experienced significant increases in terms of production were molybdenum, iodine, salt pete and calcium carbonate.
The largest markets for Chilean copper are China, Japan, South Korea, Italy, France and Germany are among the largest markets for Chilean copper receiving 18%, 14.2%, 10.1%, 8.6% and 6.3% of Chile’s production of refined copper in 2003 respectively.
Following a strictly non-discriminatory industry policy, involving equal treatment, and open and transparent regulations for foreign investors, the Chilean government has encouraged considerable foreign investment over the past two decades. Such FID has ensured the presence of the world’s main participants in the industry while enabling the transfer of cleaner technologies.
In 2002, mining collected US$ 382,761 thousand in direct foreign investment, approximately 19 percent of the total income. The better part of investment is earmarked for development and prospecting of new ore deposits, increasing capacity and reducing the environmental impact of production.
Business Opportunities
There are around one million hectares of un-worked ore reserves in Chile thus providing substantial opportunity for foreign mining companies. And with many such companies currently looking for geologically attractive prospects across the region, Chile’s easy and open operating business environment has made it the ideal gateway for expansion into South America (DFAT).
Links
Comisión Chilena del Cobre ( COCHILCO)
Compañía de Aceros del Pacífico (CAP)
Corporación del Cobre de Chile (CODELCO)
Empresa Nacional de Minería (ENAMI)
Empresa Nacional del Petróleo (ENAP)
Sociedad Nacional de Minería (SONAMI)
Last updated: February 28, 2006