Mining remains the backbone of Chile’s economy and a strategic driver of future growth. Building on its historical leadership in global minerals, Chile is the world’s largest copper producer, supplying around 27–28% of global output, and the second-largest lithium producer, with approximately 20–22% market share. The country is also a key supplier of molybdenum, silver and gold, reinforcing its relevance in the global clean-energy supply chain.
The sector contributes around 10–12% of national GDP and represents more than 50% of total exports, exceeding US$50 billion in 2024. Mining continues to be the top destination for foreign direct investment, accounting for close to one quarter of all FDI into Chile. Despite its scale and strategic relevance, the industry faces mounting challenges: operational costs, falling ore grades, regulatory uncertainty, social expectations and water scarcity in northern regions.
Sustainability has become non-negotiable. The industry historically contributed just under 7% of Chile’s greenhouse-gas emissions, prompting operators to accelerate decarbonisation. Major companies — including Codelco, BHP, Anglo American and Antofagasta Minerals — are advancing renewable-powered operations, desalinated water use, electrified mining fleets, digitalisation and circular-economy solutions to reduce environmental impact while improving productivity and resilience.
Global demand for critical minerals continues to surge. Copper and lithium are essential to electrification, battery manufacturing, semiconductors and renewable infrastructure. Forecasts indicate strong long-term consumption growth driven by electric vehicles, energy storage and grid expansion.
Chile’s competitive advantage is clear: abundant resources, decades of technical know-how and a policy focus — including the ongoing National Lithium Strategy — designed to capture value from the green-transition economy. The country’s mining sector stands at a decisive inflection point: pressured to transform, yet uniquely positioned to lead the clean-technology future.
Historically Copper mining in Chile had been done by open cast methods. As the huge open pits get deeper and deeper, the immense trucks that are used to bring the ore to the surface for processing are using more and more fossil fuels. The incorporation of Green Hydrogen to replace the conventional fuels provides an important opportunity to reduce the carbon emissions from this part of the process.
Another trend that is helping to reduce the particulate matter released from the open pit mines is to move the operations underground, where the different technology used produces less environmental issues.
For more details please see the sector specific report on mining.
