Chile plans to inject approximately $83.18bn into its mining industry from this year through 2033, reported Mining.com, citing Reuters.
The investment marks a 27% increase from the previous year’s estimate, according to a study by state-run agency Cochilco.
The increase in projected spending is attributed to 11 new projects valued at around $15.66bn. These include expansions by Freeport-McMoRan, Anglo American‘s works at Los Bronces, Codelco’s improvements at Chuqui Subterranea and a lithium project at the Maricunga salt flat.
The Cochilco report outlines 51 upcoming projects in Chile, the leading copper producer globally and the second-largest lithium producer.
Notably, more than half of the total investment, amounting to $42.96bn, is earmarked for projects between 2024 and 2026.
Diario Financiero, a Chilean newspaper, noted that Cochilco’s report does not account for a $14bn expansion plan by mining giant BHP, announced last month. Total investments could reach nearly $100bn, including BHP‘s projects.
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By GlobalData
Lithium is a crucial component of rechargeable batteries, highlighting the strategic importance of these investments.
In a move to further expand lithium production, Chile’s mining ministry announced six additional sites eligible for lithium extraction by private companies, supplementing the six sites previously identified.
The government aims to stimulate lithium production by encouraging private sector investment alongside state-owned copper giant Codelco’s efforts.
The newly designated zones hold potential for lithium and other mineral projects including polymetallic mining and clay-contained lithium extraction.
The majority of these zones are located in the Antofagasta and Tarapaca regions in northern Chile.
Companies interested in these opportunities must submit proposals by 31 January, an extension from the original 31 December deadline for the first batch of lithium deposits.
The private entities must possess experience in the lithium value chain and sufficient financial resources, in addition to controlling at least 80% of the mining concessions in their proposed project area, to gain government approval.
An exception is made for Cerro Pabellon in Antofagasta, where a separate procedure will apply due to an existing geothermal energy project.
