Chile is leader in copper output

The largest producer and exporter of copper in the world is Chile. In addition to copper, the South American nation’s mineral output includes gold, silver, molybdenum, iron and nitrates.

State-owned copper mines are situated in the north (Chuquicamata and El Salvador) and in the north-central region along the Andes (El Teniente and Andina).

American investment helped to develop the nation’s mining industry at the start of the current century. The 1970s saw the government nationalize the mines under the administration of the Corporacion Nacional del Cobre de Chile (Codelco).

The north-central region of the country yields iron ore and manganese, as well as non-metallic minerals such as sulphur, gypsum, lithium and limestone. Nitrate deposits can be found in the northern interior desert. Nitrate had significant economic value during the last century; a byproduct of nitrate is iodine.

It has been reported that Codelco is planning to spend US$450 million to increase copper production; several of its mines are experiencing declining ore grades. Developing projects include the Radomiro Tomic (formerly Chuqui Norte) deposit. An expansion of its Andina mine is planned. Two possible projects are El Abra north of Chuquicamata and Mansa Mina near Chuquicamata. Codelco projects copper production in 1993 of about 1.15 million tons, similar to last year.

A significant contributor to Chilean copper production is the privately owned Escondida project which was commissioned in 1991. Escondida could produce about 400,000 tons copper-in-concentrate this year, which would be up by some 18% from 1992. Escondida is owned 57.5% by BHP, 30% by RTZ, 10% by a Japanese consortium and 2.5% by International Finance Corp.

Chile has its own coal reserves and moderate oil and gas reserves. Rivers flowing from the Andes have been harnessed for the manufacture of electricity.