A global copper titan
In addition to having the largest reserves, Chile has remained unopposed for years as the largest copper producer worldwide, representing some 27 percent of the global production in 2021, and with an output rivaling that of the following top three combined. Production is concentrated in the north of the country, particularly in the Antofagasta region - where Escondida, the world’s largest copper mine based on production capacity, is located.Given the importance of copper to the Chilean economy, it is no surprise that the country’s largest copper producer – Corporación Nacional del Cobre de Chile, commonly known as Codelco – is also Chile’s leading mining company. Codelco's revenue surpassed 21 billion U.S. dollars in 2021. The Chilean state-owned company, headquartered in Santiago, was officially established in 1976 under Augusto Pinochet’s dictatorship. Nowadays, it still accounts for almost one-third of Chile’s annual copper output. Other leaders in the Chilean mining sector include Minera Escondida, controlled by Australian company BHP Billiton, and Anglo American, both also operating in the copper segment.
Lithium: the next era of Chilean mining
Aside from copper, Chile has also gained increased attention in recent years as the home to the world’s largest proved lithium reserves, an alkali metal that experienced a boom in popularity due to its utilization in ion-lithium batteries. Although Chile’s lithium production still lags far behind global leader Australia, the South American country’s annual output has nearly doubled in the past decade. Its lithium potential is expected to continue developing, as international mining corporations start investing in the country, after years of exclusive exploration rights granted by the government to Chilean mining company SQM and U.S.-based Albemarle.
