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Chile is one of Latin America's most importantly mining countries -- and maintains its role as the world's largest copper producer. As a result, Chile has one of Latin America's strongest economies.
Economic growth decreased slightly in 1999 due to depressed copper prices. The importance of copper mining to the Chilean economy cannot be understated. Mining and mineral products account for 8.5% of Chile's GDP and nearly half of Chile's total export earnings, of which more than 80% is attributable to copper. Investment in Chile's mining sector has grown substantially over the past decade with mining related investments spending expected to climb to $2 billion in 2001.
The vast extent of cuprous porphyry orebodies that exist along the Andean Cordillera are responsible for Chile's vast copper and molybdenum reserves. Some of the world's largest opencast mines relocated at high altitudes and harsh environments along the cordillera. Coupled with copper, Chile has traditionally been a major gold and silver producer as well. The past 30 years has seen as many as 22 copper and 13 gold discoveries in Chile. As a result copper resources have been estimated at 125 Mt of metallic copper, gold resources at 1 800 t and silver at 12 100 t.
Chile has generally been seen as the first port of call in terms of investing in South America and as a result numerous foreign companies are busy developing the country's burgeoning mining sector. Chile is recognised as the mining capital of Latin America, and can be credited with initiating the investment surge to make Latin America the world's primary mineral target. Efforts to privatise Chile's larger companies have been occurring since the 1970's. Corporación Nacional del Cobre de Chile (CODELCO), Chile's state owned copper company remains to be privatised, along with ENAMA, the oil and gas company. Private owned companies are rapidly becoming the most important producers of metals in Chile, producing as much as two thirds of production by 2000.
The Campos de Hielos treaty signed in 1999 will strengthen ties with neighbouring Argentina; in particular in the light of recent mining developments that straddle the border between the two countries. Apart from accessing high-grade copper and gold orebodies, Argentina will have access to Chile's improved infrastructure as well as Chile accessing Argentina's water resources.
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