Chile mining sector faces challenges in exploration and production

Chile is facing significant challenges in its mining sector despite a recent increase in exploration spending. While the 2025 exploration budget reached US$874.7 million—the highest since 2013—the investment is heavily concentrated on existing sites. Approximately 51.4% of the budget is directed toward brownfield development within known mines, while only 23.6% is allocated to initial exploration for new deposits.

This lack of new discovery threatens future reserves at a time when global demand for critical minerals is rising due to decarbonization and electromobility. Copper production in 2025 reached 5.4 million fine tonnes, remaining below the 2018 peak of 5.8 million tonnes.

Broader economic indicators reflect these mining difficulties. Recent data shows a 17.4% drop in mining activity, contributing to a decline in the Imacec index and rising unemployment. Experts suggest that stagnant productivity, declining ore grades, and reduced investment following tax reforms have contributed to a long-term slowdown in economic growth compared to previous decades.