The future of mining in Chile

The morning began with an introduction by the Director of InvestChile, Karla Flores, who provided an economic outlook of Chile. InvestChile is a state agency that promotes and attracts foreign investment into Chile.

She presented the latest statistics on the growth of the Chilean economy. The GDP continues to grow between 2.3% and 2.5% annually, and cumulative GDP per capita is projected to grow 1.3% in the next year. Furthermore, Chile is enjoying increasing foreign investment, and the stock market has hit a 15-year high. She explained that globally Chile’s debt-to-GDP ratio remains low, sitting comfortably below the OECD average. Chile is enjoying a period of marked economic prosperity, in part due to the mining industry.

This minister, Aurora Williams, then started her presentation by explaining the abundant international investment opportunities in the Chilean mining industry. Chile enjoys an extensive network of mining infrastructure that allows it to unlock its mineral potential. All mines are close to the sea, making exporting to international markets friction-free. This infrastructure is now expanding, with new foundries being built to process minerals for the market. Developments such as these rely on international investment, which has grown by more than half over the past year.

The minister set out the government’s strategic investment strategy, which focuses on lithium production, sustainable and competitive mining, and renewable approaches.

Mining production in Chile is expected to expand for the second year running, and Copper prices have grown 18% this year. Looking ahead to 2040, demand will continue grow. However, the headline figure is that demand for lithium will increase 4.6 times in that period. Chile has abundant reserves of lithium, copper, cobalt, and rare earth minerals, whose value will continue to grow.

The Minister made it clear that the Chilean government welcomes private sector partnerships with the state mining company, Codelco. In particular, she highlighted the role the private sector has been playing in developing new technologies for the extraction of lithium, adding value to lithium earlier in the production cycle.

As the discussion opened to the table, the Minister took questions on the geopolitical situation and how Chile is interacting with neighbouring Argentina and Bolivia. She stressed that these countries must not be seen as competitors but as collaborators, and indeed she pointed to important Argentine investment in the Chilean mining sector. Chile is a globalised country, but the government must continue to work to protect itself, the minister stressed.

Throughout the morning, the Minister celebrated Chile’s political stability. New laws have expedited bureaucratic processes specific to the mining sector, and the government continues to respect its long-term commitments. She stressed the continuity between democratically elected governments and the continuing respect for international agreements, which should help to attract investors.

The minister painted a positive and future-aware picture of the mining sector in Chile, which continues growing and welcoming international investment. Canning House extends its thanks to the Minister for sharing her perspective with our community.