Mining in Chile expected to grow between 6% and 7% this yearInfrastructure
Growth can be explained by the increase in copper production, the main product exported in the country
Chile is one of the world’s leading mineral producing countries, and in 2023, this industry has been an important driver of the domestic economy, generating jobs and income. According to the director of studies of the Sociedad Nacional de Minería (Sonami), Álvaro Merino, this year the mining sector should grow between 6% and 7%, with copper production close to 5,700,000 tons.
For Merino, this growth can be explained by the low comparison base and the relevant increase in copper production, the country’s main export product. In 2022, the price reached high levels and the expectation is that this trend will continue in 2023. This should lead to an increase in production and, consequently, in mining activity.
Another positive outlook is that the Chilean government has encouraged the development of new mining projects and this may stimulate an increase in the production of non-metallic products, such as lithium, which is increasingly valued in the electric vehicle battery industry. In addition, the country has also been investing in technology and innovation in the mineral industry, which can increase the efficiency and productivity of operations.
The sector has also been boosted by international trade agreements with several countries, such as China and the European Union, which favor the export of Chilean minerals. In 2023, these trade agreements are expected to continue to drive the market.
Chile has been recognized for its efforts in sustainability and social responsibility in the mining industry, implementing strict regulations to ensure worker safety and environmental protection. This concern with sustainability has attracted investments from international companies.
However, despite the positive outlook, the Chilean mining market still faces challenges, such as lack of adequate infrastructure and transportation for the flow of production. Chile is a country with a complex geography and the transport infrastructure is still limited in some regions, and this can affect the country’s competitiveness in the international market.
Another challenge is the lack of qualified labor. The demand for trained professionals has increased in recent years and, in some cases, the supply has not kept up with the demand. The Chilean government has encouraged the training of professionals in the mining area, but there is still a long way to go.
By: Santelmo Camilo