From the coins we use to the cutlery we eat with, copper It is one of the most important and valuable metals in the world, which is why it moves millions every year. According to statistics company Statista, this is one of the industries that has benefited the most from this industry chilithe South American country whose production, according to the USA, is the largest in the world at 5 million tons per year Chilean Copper Commission (Cochilco).
This means that Chile not only outperforms its neighbor Peru, but also major powers such as Russia and China. The export of this product only generated in 2022 50 billion US dollars.
YOU CAN SEE: The Latin American country with the largest silver reserves in the world: surpasses the USA and China
How did Chile become the largest copper producer in the world?
Copper production in Chile dates back to the existence of the pre-Hispanic Tiahuanaco culture, which comprised the present-day Chilean nation. However, it grew since the 19th century, after independence, when about 19,000 tons of copper were mined.
After a sharp decline in copper extraction, this metal's boom began in the 20th century, when it attracted the attention of international consortia that showed interest in areas rich in this element, such as: B. Chuquicamata. As early as 1966, it was determined that the state should own 51% of the deposits in order to participate in their production and marketing.
Chile wants to improve its copper production by 2026. Photo: AFP
YOU CAN SEE: The Mukaab, the cube that will be one of the largest buildings in the world: equivalent to 20 Empire States
However, this scenario changed in July 1971 after the project to nationalize large copper mines was approved. This allowed the state to claim its wealth and natural resources from foreign companies, leading to the creation of the National Copper Corporation of Chile, Codelco.
Since then, Chile has positioned itself in the copper market and accounts for 28% of world production thanks to the activities of large companies such as Codelco, BHP, Anglo American and Antofagasta Minerals. The profits of this industry are of utmost importance as they represent 15% of the national gross domestic product (GDP).
Copper is one of the most commonly used metals in the world. Photo: coats.com
YOU CAN SEE: The 8 Latin American countries that do not require a visa to enter the UK
Which countries have the highest copper production?
- Chile (5,384 tons)
- Democratic Republic of Congo (2,600 tons)
- Peru (2,425 tons)
- China (1,696 tons)
- United States (1,203 tons)
- Russia (926 tons).
YOU CAN SEE: The region in South America that has more oil than all of Saudi Arabia and all of Canada
Which regions of Chile have the largest copper reserves?
Chile has large deposits of copper on its land, especially in northern regions such as Antofagasta and Tarapacá. In both there are important deposits such as Escondida, Chuquicamata or El Teniente.
Despite the good results of recent years, Chile recorded a slight decrease in its production in 2023. For this reason, the government of President Gabriel Boric announced that it has set a target for these results, which envisages an increase of 1.04 million tons by 2026.
Likewise, the application of the mining royalty tax was introduced, which aims to increase annual revenues by 0.45% of GDP (approximately $1,350 million). “We were able to reach agreements and innovative solutions that satisfied all the sectors involved,” said Finance Minister Mario Marcel.