Opportunities for Mexico-Chile Mining Collaboration

In an era of increasing globalization and environmental challenges, mining remains a cornerstone of both Chilean and Mexican economies. Francisco Lecaros, President, Chilean Mining Foundation, highlights the deep interconnection between the two countries, emphasizing the importance of sharing knowledge and strategies to address common challenges and seize joint opportunities in the mining sector.

Chile stands out as the world’s leading copper producer and holds 52% of global lithium reserves. The country also stands out in lithium production, surpassed by Australia, and gold and silver, trailing Peru. Mining accounts for 12% of Chile’s GDP, with its real impact rising to 20% when considering associated productive sectors.

In the past five years, mining has attracted an average of 36% of foreign investment in Chile, with significant contributions from the United States, Australia, China, and Canada. Chile’s exploration budget is substantial, with US$396.6 million allocated for copper, US$150.7 million for gold, US$24.6 million for lithium, and US$10.1 million for other metals. The country represents 5% of global metal exploration.

Chile also leads in exploration investment per unit area, with US$762 per km², compared to Mexico’s US$310 per km². The Chilean mining sector directly employs around 34,000 people annually, and with future projects and environmental evaluation (SEA), this number is expected to increase significantly by 2030.

Chile is committed to a sustainable future in mining. By 2030, it is estimated that 90% of the electricity used in mining will come from renewable sources, with a goal of reaching 100% by 2050, possibly even earlier due to ongoing investments in solar and other renewable energy projects. The current energy project portfolio in Chile totals US$16.967 billion, with 140 projects under evaluation. 

At the same time, Lecaros highlights how mining is essential for the development of green energy and electromobility, as it provides the minerals needed for these technologies. In particular, the Chilean solar energy market greatly benefits from this relationship, given that Chile is a significant producer of critical minerals for the production of solar panels and other key components for the transition to cleaner energy.​ 

The mining industry is also exploring new water management strategies, with 74% of the supply coming from reuse, 18% from continental sources, and 8% from desalinated seawater. Additionally, Chile is developing projects in hydrogen and water resources to ensure environmental sustainability.

Specifically in the mining sector, there are still challenges to face in Chile, including regulatory approvals needed to advance product development, as these can take up to 10 years. “Chile is working to streamline and reduce bureaucracy in the system. Developing new mining projects in Chile can take up to 10 years, and project judicialization has led to US$2.6 billion in investments being stalled. Bureaucracy and permitting remain significant obstacles, but efforts are underway to streamline these processes. Opportunities also lie in tailings management and policy improvement,” he says.

Chile faces challenges like those in Mexico, including the need for better mining socialization, environmental education, and regional development. Negative perceptions of mining, particularly open-pit mining, are also rampant in Chile. “Regarding the reform that bans open-pit mining, it is important to note that 70% of the mines in Chile are open-pit. If a law related to this is passed in Mexico, it could negatively impact Chile as perceptions in other regions affect our local realities. What happens in Mexico has repercussions in Chile,” states Lecaros.

Both countries must advance in effectively communicating the importance of mining and its contribution to daily life and economic development. “The mining industry should take pride in its contributions, as it helps address the social needs of countries.” shares Lecaros. “Mining is an integral part of daily life, and we must prevent misunderstandings. It is impossible to remove mining from our lives; the public must receive accurate messages through education.”