Chile, a reliable mining supplier

In recent decades, Chile has solidified its position as a world leader in copper production.

While in 1990, Chile represented 17.7% of global production, in 2014 it produced 5.74 million metric tons of copper, equivalent to 31% of global production, according to data from the Chilean Mining Council.

Copper has become Chile’s main export. In 2015, it represented 49.95% of the country’s total shipments abroad, with a value of US$31.1 billion.

The future of the Chilean industry and its position at the global level is promising, thanks to the long-term plans of the country’s main public and private mining companies to increase their production.

The boom experienced by the copper sector during the 1990s onwards was due to the unprecedented innovation by the Chilean mining industry and the economic opportunity in the country, which allowed foreign investment to play an important role in the expansion of the sector.

Chile’s growth is also due to the availability of highly trained and qualified human resources. The country status as an attractive place for foreign investment is due to extensive roadways and communication infrastructure, responsible and expansive economic policy, a climate of democratic stability, and an institutional legal framework.

The domestic and foreign suppliers located in Chile have been fundamental to Chile’s mining growth by optimizing exploration and production processes.

Chile’s mining supply sector includes capital goods such as trucks and shovels; inputs such as reagents, sulfuric acid, tyres, grinding media and steel products; and services such as engineering, consulting, assembly and construction.

The demands of the mining sector have led Chilean suppliers to become leaders in certain areas of products and services, such as perforation drills, portable probing machines, heavy structure and boiler making, blasting tools, and rock fortification and stabilization elements.

The diversity of products and services developed under high-quality standards and the experience accumulated over the years have allowed Chilean mining suppliers to export their goods and services to a wide range of markets with a competitive price-quality ratio.

During 2014, Chilean companies in this sector exported products and/or services totalling US$537 million, according to the first Report on Exports by Mining Providers (2010-2014) by Fundación Chile in collaboration with ProChile and Achilles. The report stated that 87% of the shipments from this sector go to Latin America, 5.5% to North America, and 3.6% to Asia.