Mining various metals and other valuable resources has been a catalyst for many of the economies across the globe. Mining shows promising results for the economy and boosts up industrial development across the country. Chile is one of the countries that prioritize metals as their exports, and it plays a vital role in the country’s overall economy. Chile is the world’s biggest producer and exporter of copper. Copper mines are abundant throughout different parts of the country, but northern Chile is what adds up as the most significant chunk in this regard.
Role of Copper in Economic Development of Chile
Copper has played a vital role in the economic prosperity of Chile throughout the centuries. In the early 90’s Chile took a perfect turn to pump up its economy, and copper mining acted like a trump card in this regard. The natural resource export model combined with the institutional reforms allowed Chile’s economy to do wonders. With the continuous growth in copper usage, copper mining acted as a high-paying asset for the whole country.
Copper Mining Companies
In the last three decades, the copper mining industry has been a driver for Chilean exports. The state-owned copper mining company Codelco can be thanked in this regard. Codelco is not single-handedly extracting all the copper of the country. With the rise of awareness, many elite Large-Scale Private Copper Mining (LSPCM) companies like Three Valley Copper (TVC.V) have joined the race.
Whatever the present state of the metal economy is, the apparent fact can’t be denied that the copper industry has put Chile on the world map. The intensity of this field can be estimated by the fact that copper production in Chile went from sixteen hundred million tons in 1990 to fifty-five hundred million tons in 2016. According to Statista, the mentioned production has continuously been increasing since the last decade. Critics have predicted that copper production in Chile will constantly increase for the next twenty years. Chile continues to be the biggest producer of refined Copper in late 2021.
Benefits of Copper Mining Industry
Chile is termed as the copper powerhouse in the modern business language. As mentioned earlier, the copper mining industry has put Chile on the world map and produced over one billion direct and indirect job opportunities nationwide over the decades. Such an industry can’t be taken for granted. Chile doesn’t benefit only from copper. Various other minerals are mined alongside copper mining in Chile.
Chile’s mines produce gold, molybdenum, iron, and silver alongside copper in abundant quantities. It’ll be safe to say that the land is rich in valuable minerals, and the nation is taking full advantage of it. Hydroelectric potential and installed capabilities and coal and moderate oil and natural gas reserves furnish Chile with good energy resources.
Being one of the major producers of the copper industry for over thirty years, Chile is likely to keep its copper crown for a long time. Chile alone contributes to 5% of the world’s copper supply annually. The copper mining industry has proven a fortune coin for Chile’s economy.