Chile is a country which has maintained a free market policy that has uninterruptedly permitted the entry of capital and goods from abroad and, at the same time, fostered the export of goods and services. This has generateda very sophisticated and highly competitive local market that has obviously forged a stable and healthy economy. In this context, it is important to note that Mitsubishi Corporation’s first mining investment outside Japan was in Chile.
Toshihiro Shimazaki, President, Mitsubishi Chile Ltda.
Chile is the world’s leading copper producer
|38.8%||of international copper output comes from Chile
|27.5%||of international copper reserves are in Chile
|15%||of international expenditure on exploration for copper takes place in Chile
|41.7%||of the world’s copper mining investment portfolio is in Chile
|4.572.000||Chile has 4.572.000 tonnes of additional copper production capacity (the largest in the world)
Demand for copper will grow more than 50% by 2025.
|1st||in production of natural nitrates|
|1st||in iodine production|
|1st||in lithium production|
|3rd||in molybdenum production|
|8th||in silver production|
|14th||in gold production|
Sources: USGS, Cochilco.
In Chile, inflation is controlled, the exchange rate stable and unemployment low.
A significant number of multinational companies have established their regional offices in Chile, positioning the country as one of the region’s financial hubs.
Competitive advantages for copper production
Large world-class copper deposits.
Favorable ore grades
Great geological potential
Chile accounts for 15% of international expenditure on exploration for copper.
In 2011, Chile accounted for 27.5% of international copper reserves
Appropriate port and road infrastructure
Installed port capacity, located at a convenient distance from mine sites.
Important railway and road networks to reduce transport costs
Availability of permits
Low uncertainty as to legislation facilitates access to permits for mining exploration and operations.
Exploration concessions are for a period of two years, which can be extended once for a further two years.
Over 20 engineering companies operate in Chile, representing annual sales of more than US$45 million. 75% have foreign capital.