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Chile's mining sector contracts in 2022 due to decline in metal mining

Kitco Media
By Vladimir Basov
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(Kitco News) - According to Chile’s National Institute of Statistics (INE), the country’s industrial production index (IPI) contracted 1.0% in December 2022 y-o-y due to decrease in the manufacturing sector while mining and electricity, gas and water sectors were up. In 2022, Chile’s industrial production fell by 2.4%.

INE said that the 1.8% increase in Chile's mining sector (IPMin index) in December 2022 y-o-y was primarily due to the higher activity registered in the country’s metallic mining subsector (up 1.6% y-o-y).

According to the report, Chile, the world’s largest producer of copper, mined 497,971 tonnes of copper in December 2022, which is in line with 498,300 tonnes mined in December 2021.

Meanwhile, Chile's manufacturing production index (IPMan) decreased by 4.1% in December 2022 compared to the same month of the previous year, primarily due to the decline in manufacturing of chemical substances and products.

The agency added that the country’s electricity, gas and water production index (IPEGA) increased by 1.1% in December 2022 compared to December 2021 due to the growth in electricity generation.

INE said that in 2022, the country’s IPI index registered a decline of 2.4%, mainly due to decreases in the IPMin (-3.4%) and the IPMan (-2.4%) indexes, while the IPEGA index increased by 1.4% compared to 2021.

The agency explained that the annual decline in the IPMan index was mainly due to lower activity in manufacturing of metal products, except machinery and equipment, and in manufacturing of chemical substances and products.

INE added that the decline in the IPMin index in 2022 was primarily due to the contraction in metal mining, while the annual increase in the IPEGA index was due to the increase in electricity generation.

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Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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