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Mining
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Overview

Chile is the top copper producer in the world with 24 percent of global copper production and, according to United States Geological Survey (USGS), the world’s second largest producer of lithium with 27 percent of global lithium production. These two minerals make the mining industry a key sector of the Chilean economy. Chile is also the number one producer of iodine, rhenium and sodium, and potassium nitrate. According to Statista, the mining sector’s contribution to the country’s 2023 GDP was approximately 12 percent and mining exports reached 57 percent of total country exports. Since 2022, the mining sector has been the highest recipient of foreign direct investment (FDI) in the Chilean economy.

In 2024, the mining sector produced 5.5 million tons of copper, a five percent increase from the previous year. The annual average copper price in 2024 was $4.18 per pound, while the estimated price of copper for 2025 is $4.25 per pound.

The Chilean government estimates that approximately 70 percent of copper mines are owned and operated by private mining companies. The remaining 30 percent are owned and operated by state-owned mining company Codelco. Freeport McMoran Copper & Gold Inc. of Phoenix, Arizona and Albemarle Corporation of Charlotte, North Carolina are two major U.S. investor companies operating in the market. Canadian, Australian, European, and Asian companies are also present.

In 2024, Chile’s Mining Royalty Law went into effect. The mining royalty reflects a new government initiative to reform the tax on large-scale mining companies in the sector. Operators whose annual sales consist of more than 50 percent copper and exceed 50,000 metric tons (MT) of fine copper face an ad valorem tax at a rate of one percent on their annual copper sales. Then, an additional tax between eight and 26 percent is applied on the operator’s Adjusted Taxable Mining Operating Income (RIOMA). Operators producing more than 80,000 MT of fine copper can face the maximum tax of 46.5 percent on their RIOMA.

According to USGS, 36 percent of the world’s lithium reserves are located in Chile. Chile’s lithium is found, for the most part, in brine deposits, which are lakes of saline groundwater located beneath salt flats. Chile lithium production output increased from 44,300 MT of lithium content in 2023 to 49,000 MT in 2024. Also in 2024, the average price of battery-grade lithium carbonate was estimated at $14,000 per metric ton. Today, there are only two companies active in the lithium extraction industry: Soquimich S.A. (SQM) in association with Tianqui which owns 24 percent of SQM, and Albemarle Chile Ltda. a fully owned subsidiary of Albemarle Corp.

Due to the difficulty of accessing brine deposits relative to traditional hard rock mining, the Center of Global Energy Policy at Columbia University reports that it may take an interested mining company approximately seven years after an initial investment decision to see the first lithium production. This is due to long lead times for brine operations and complicated permitting rules. Chile’s “Smart Permit System” law which aims to streamline the processing times of sectoral permits is currently being reviewed by the Chilean Senate.

According to Columbia University, Chile holds 61 percent of global lithium carbonate, which is the key ingredient in lithium iron phosphate (LFP) batteries. These batteries are considered cheaper and safer than the nickel, manganese, and cobalt (NMC) battery alternatives, which use lithium hydroxide instead. As LFP batteries grow in demand, Chile’s lithium industry is expected to play an essential role in supply chains for American battery manufacturers, electric vehicle producers, and energy storage service providers.

Recognizing the critical value of lithium in the global energy transition, President Boric launched the National Lithium Strategy in June 2023 to provide Chile a roadmap for the future of the country’s lithium sector. The policy involves the State at all levels of the production cycle, from exploration to manufacturing, through public-private partnerships. In particular, the newly established National Lithium Company is a state-owned enterprise that seeks out relationships through private tenders that will bring innovative technology and capital into Chile for sustainable lithium development.

According to the Association of Industrial Mining Suppliers, there were over 3,000 official suppliers to the mining sector with combined sales of more than $13 billion in 2022. The United States supplied about 20 percent of parts and equipment to the sector and enjoys a reputation for quality and reliable service. Export opportunities will remain for companies offering products and services that bring operational cost reductions, improved productivity, and more efficient use of energy, water, and cleaner and safer processes.

The Chilean mining sector is investing in new technologies to become more sustainable and support the country’s sustainability goals. Mining projects are incorporating desalination and renewable energy to reduce their carbon footprints. Water consumption in the mining sector is less than four percent of the total country’s consumption compared to 72 percent in the agricultural sector, and approximately three quarters of water is recirculated. Mining companies are also deploying automation and remote operations technologies to improve efficiency and safety. In early 2025, CORFO – Chile’s premier development agency – called for companies to begin extracting cobalt and other rare earth minerals from mining waste from copper and lithium production. This is an opportunity for U.S. technology companies to develop partnerships in this new market.

A key challenge in the future of the mining industry in Chile is the lack of human capital. According to the CCM-Eleva Alliance, a premier mining skills council, the industry will need 34,000 additional workers by 2032 to keep up with massive retirement numbers. However, there are not enough technical schools in Chile to cover the demand for specific non-engineering jobs, such as mechanical maintainers and mobile equipment operators, needed for mining operations.

Table: Chile Mining Equipment and Machinery (US$ Millions)

 

2022

2023

2024

2025 estimate

Total Exports

197

243

215

246

Total Imports

4,898

4,453

4,171

5,435

Imports from the U.S.

999

1,129

1,291

1,575

U.S. Trade Surplus (Deficit)

982

1,106

1,269

1,543

U.S. Share of Imports

20%

25%

31%

31%

Units: US$ million, 2025 estimates based on first six months of 2025

Source: Global Trade Atlas (HTS 8207, 8425, 8426, 8428, 8429, 8430, 8474, 870410, 87042121, 87042140, 87042240, 870423, 87042321, 87043140, 870443, 870460, 87049040, 40116910, 401180, 401190)

Leading Sub-sectors

  • Off-road transportation parts & equipment, bulldozers, scrappers, and trucks, 360o revolving excavators
  • Crushers; grinders and parts for rock cutters
  • Cranes and screening machine parts
  • Underground mining technology equipment, services, and parts
  • Desalination plants, equipment and parts, and monitoring technology
  • Air pollution abatement technology, services, and parts
  • Tailing pond monitoring technology, services, and parts
  • Carbon footprint reduction services, technology, and parts
  • Personal safety equipment

Opportunities

According to Chilean Copper Commission (COCHILCO), a total of $83.2 billion in investment projects are under execution for 2024-2033. Of these, $66.6 billion are brownfield and $15.2 billion are greenfield. Over half of the investment will be spent by state-owned Codelco. The remaining investment is expected to be undertaken by private mining companies.

Chile’s mining concessions are primarily related to the lithium industry. Only two companies, SQM and Albermarle, extract lithium in Chile. In April 2024, the Ministry of Mining approved the Procedure for Issuing a Request for Information for Projects for the Exploration, Extraction, and Processing of Lithium Contained in Salt Flats or Other Types of Deposits (RFI). The Procedure or RFI gives guidance on how Special Lithium Operation Contracts (CEOLs) may be granted under the National Lithium Strategy of 2023. The Chilean government retains ownership of all lithium resources, and thus, companies must obtain special contracts or partnerships with the state to legally extract lithium. CEOLs are awarded by the Chilean government to qualified bidders seeking to mine lithium in salt flats across the country. Bidders may be Chilean or foreign companies.

There are 31 salt flats that are either completely or partially available for private lithium extraction under the RFI. In September 2024, the Chilean government identified six salt flats as initial priority areas for CEOL assignment. Each of these “salares” may receive one CEOL. In December 2024, the government announced six additional lithium deposits as the next round for CEOL allocation. As of July 2025, no CEOLs have been officially signed. Chile is still processing applications submitted by investors. More salt flats are expected to be open to bidding in the future.

The National Lithium Strategy also promotes Direct Lithium Extraction (DLE) technologies to maximize resource recovery and minimize water usage. DLE companies are encouraged to apply for future CEOLs. However, there are no current commercial DLE operations in Chile, making it unproven in the industry.

Trade Shows

EXPONOR, June 8-11, 2026, Antofagasta, Chile. Exponor is Chile’s second largest mining trade show. The U.S. Pavilion usually features around 40 exhibitors (www.exponor.cl).

EXPOMIN, April 2027, Santiago, Chile. Expomin is the world’s largest mining trade show outside of the United States. Global attendance at this show is normally more than 1,200 exhibitors. The U.S. Pavilion usually features around 60 exhibitors (www.expomin.cl).


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