Chile needs to make greater regulatory and legal changes to boost investment, Alejandro Tapia, head of Escondida, the world’s largest copper mine, said on Thursday at ChileDay investment conference in New York.
Chile is the world’s largest copper producer, accounting for nearly a quarter of the world’s global supply in 2024. Miners have complained about the country’s regulatory process and delays.
As ore grades drop around the country and global demand increases, large-scale investment is needed to boost output and help offset global shortages.
“The significant increase in demand for copper could attract major new investments to Chile, provided we can ensure legal certainty, fiscal stability, and a modern, faster permitting system.”
“I would like to recap by stressing the central message: growth, permits, and environmental legislation should be an urgent priority if we want to take advantage of the immense opportunity we have as a country when, in 2050, the world will need 70% more copper than it does today.”
“It’s a regulatory issue that I’m sure we can improve to unlock investment,” he added.
Escondida is the world’s largest copper mine and BHP announced a $10 billion investment plan in the country if environmental permits are approved. BHP said it would start the 10-year investment plan with a $2 billion optimization of its concentrator.
Chile’s copper production grew 4.9% to 5.5 million metric tons in 2024 according to Chilean state copper commission.
Escondida produced 1.28 million tons in 2024.
BHP said global copper demand in 2023 was 31 million tons and expects it to grow by 1 million tons a year until 2035.
A bill that would expedite several permitting processes is making its way through Chile’s Congress.
(By Fabián Andrés Cambero; Editing by Alexander Villegas and David Gregorio)
