Resilient and Rising
Chile’s mining sector gets back on track
After several years of challenges and uncertainty, the resilience of Chile’s mining industry shines through in 2025. The path to foreign investment is more competitive than ever, and companies across the value chain are trying to break the downward trend of decreasing production levels that have plagued Chile since 2019. The annual total for copper production in 2024 was 5.5 million t, an increase of 4.9% from 2023’s figure. As the country emerges from the recent experiences of regulatory changes and an unsettled political attitude toward mining, it seems the world’s leading copper producer is back to its brightest. Furthermore, with an election on the horizon in November 2025, companies remain cautiously optimistic about the future of mining in Chile.
In December 2024, the Government of Chile began devising the National Critical Minerals Strategy, in addition to the National Lithium Strategy, to seek environmental and social balance whilst streamlining the permitting process to develop more mines and thus increasing production once again. Aurora Williams, Minister of Mines, revealed: “We project that the strategy will be released in the next few months, with a strategy built with information from various sources, including 16 key actors in mining from institutions such as Sernageomin and Cochilco, the private sector and academia. The strategy will have a broad focus, including the redistribution of money to affected territories and how we can help increase the production of critical minerals in Chile.”
The Ministry of Mines, under the leadership of Minister Williams, has also committed to reducing the permitting time by 30%, as well as evaluating how other government agencies, such as CORFO, can add value to the country’s mining sector.
As part of the National Critical Minerals Strategy, the Government is looking to map Chile’s entire geology to equip exploration companies with better data, with companies required to report all exploration findings to the National Geological Survey. Another entity aiming to aid in exploration activity is the Chilean Mining Chamber. “One of our key initiatives is the National Geological Exploration Plan, developed in collaboration with the College of Geologists, which aims to map Chile’s mineral resources region by region. This US$4 million project, expected to last 24 to 36 months, will create jobs for geologists, engineers, environmental specialists, and archaeologists, while providing crucial data on Chile’s mineral wealth to guide future mining investments,” said the Chamber’s president, Manuel Viera Flores.
Cochilco (the Chilean Copper Commission) reported a monthly production of 563,400 t of copper in December 2024, the highest in Chile’s history and 14.1% higher than December 2023. The executive vice president of Cochilco, Claudia Rodríguez, emphasized: “The most significant trend revealed in this report is that as a country, we have moved past the downward trend in production figures and are beginning to witness a rise once again. Chile will also increase its share in global production to approximately 27.3% by 2033.”
The first months of 2025 have seen a surge in demand for copper, and this has been reflected in a price hike of 11.44%. Analysts attribute this to a weakening US dollar, geopolitical tensions, rising industrial demand, and the tariffs imposed by the US government, as well as the ongoing global shift toward renewable energy and electric vehicles. However, copper price outlooks remain cautious for the foreseeable future, owing to geopolitical tensions and the ensuing supply chain challenges.
US President Trump has threatened a 25% tariff on all copper imports to the US, sinking the price by up to 7.7% on the London Metals Exchange. More uncertainty is affecting the short-term attitude of investors and buyers. Claudia Rodriguez explained: “Copper is currently being investigated by the Department of Commerce in the US, which is causing volatility in markets that are concerned about whether tariffs will be imposed or not. However, demand for copper has continued to grow, and investments are beginning to materialize, leading to our confidence in the copper price moving forward. If anything, geopolitical tensions position Chile well to increase its leadership in copper production.”
Uncertainty surrounding international trade and increased protectionism from foreign governments could create opportunities to step up and collaborate to meet the rising demand for copper. “Chile is a globalized country, whereby we have 34 free trade agreements covering 65 economies that represent 66% of the world’s population and 88% of the global GDP,” outlined Minister Williams.
Working to promote the interests of Chile’s service providers, APRIMIN president Dominique Viera suggests geopolitical tensions and the potential of foreign trade wars present an opportunity to the service and supply sectors: “Global supply chain disruptions have also triggered strategic reconsideration. Companies are now exploring nearshoring to reduce exposure to distant suppliers, a lesson reinforced during the pandemic. These trends are pushing us to rethink how and where we source equipment and services.”
Chile is the leading mining country amidst growing local rivals. “Collaboration is key. The world needs copper, lithium, and other critical minerals, and Latin America has them. Chile has a long history of mining and has developed a lot of expertise, especially in areas like safety and sustainability. We can share those best practices with our neighbors. At the same time, we can learn from the innovations happening in other countries. Peru, for example, has newer mines and is facing different challenges, which have led to some interesting solutions,” exemplified Carlos Carmona, vice president of Netmin, which hosts a mining industry web portal.
“In 2024, copper production in Chile increased by 4.9%, and due to favorable copper prices, mineral exports reached nearly US$57 billion. This figure represented 57% of the country’s total exports, reflecting the central role of mining in the national economy.”
Joaquin Villarino, Executive President, Consejo Minero
Carlos Parada, president of the organization, added: “There is already a degree of collaboration happening organically through the multinational companies operating in the region. These companies tend to standardize their practices and share knowledge across their different operations. However, we need to go further. We need more direct collaboration between countries, particularly in areas like logistics and infrastructure.”
Neighboring countries like Argentina, Peru, and Ecuador are all working to advance their mining industries. “Chile already has a treaty with Argentina to support binational mining projects and is engaged in initiatives with Brazil and Paraguay to develop infrastructure corridors, such as an oceanic corridor that would connect regions across the continent,” discussed Joaquin Villarino, president of Consejo Minero, continuing: “From my perspective, mining growth in neighboring countries does not pose a threat to Chile but rather presents an opportunity. It enables Chile to export mining rather than only minerals; knowledge, mining services, and technical expertise to countries that may have resources but lack deep mining experience.”
Similarly, members of APRIMIN will be looking to expand beyond Chile with the growth of mining in surrounding countries, becoming regional leaders in mining services and products. “As other countries like Argentina, Ecuador and Colombia expand their industries, our suppliers have the opportunity to export expertise and services. This is not competition but regional collaboration. We want a strong neighborhood, and the growing demand for critical minerals makes room for everyone,” outlined Dominique Viera, APRIMIN’s president.
Experts predict that demand for copper may grow by 27% before the end of the decade, with AI data centers, renewable solutions, and the EV market requiring 36.6 million t/y of the group 11 metal before 2031, according to McKinsey. “Two-thirds of the copper produced in Chile is from private companies, exemplifying the necessity of foreign investments. In this regard, we count on InvestChile, a specialized body in charge of attracting investment and making sure that Chile can handle such figures in terms of infrastructure and personnel,” elaborated Minister Williams, demonstrating how Chile is preparing itself for such investments.
“We face the reality of aging mines, many of which are over 100 years old, with declining ore grades. Operating in these conditions presents significant challenges, so we need to increase productivity and efficiency.”
Carlos Carmona, Vice President, Netmin
In Chile, copper production is expected to increase to 5.54 million t/y by 2034, peaking at 6.07 million t in 2027. This increase can be attributed to the US$83.1 billion of private investment into Chile that has been announced by mining companies over the last couple of years, and bolstered by an announcement of US$13 billion worth of investment by BHP in March 2025, spread across their three Chilean assets. “Of the 51 projects in the pipeline, there are 17 in execution. The base and probable projects are those that have their environmental resolutions approved, which is 58% of the total investment figure. This investment represents the highest in Chile in the last 10 years,” continued Claudia Rodríguez of Cochilco.
In November, Chile will head to the polls to vote for a new President. Much of the talk of the mining industry has revolved around what the attitude of a new government might be as relates to mining.
Consejo Minero believes that an urgent priority should be reforming the permitting system in Chile, which has often been criticized as a lengthy and cumbersome process that hinders investment and project development. “The most urgent priority is addressing the permitting system, a need that is already widely recognized across the political spectrum. There is a consensus that permitting delays hinders development across sectors, not just for the mining industry. We value the government’s efforts in conducting reforms such as the sectoral permitting bill led by the Ministry of Economy and the Agency for the Quality of Public Policy, to streamline processes while maintaining high social and environmental standards,” highlighted Joaquin Villarino, president of the Council.
The last 12 months have been some of the most stable in the recent history of Chile’s illustrious mining history, with constitutional discussions and fears of an overly harsh royalty bill coming to an end. The large investment portfolio set to enter Chile over the next decade has given opportunities for companies across the value chain to benefit, as copper and lithium demand rise in accordance with the need for an electrified and decarbonized world. Chile’s mining industry has proven its ability to weather political and economic storms, and now it is time to reap the benefits.
“By sharing infrastructure, companies are creating economies of scale that make the exploitation of low-grade deposits economically viable. Given that many new mining projects in Chile focus on low-grade ores, this approach to efficiency is critical.”
Manuel Viera Flores, President, Chilean Mining Chamber
Article header image courtesy of Marimaca Copper