Chile's Economy
Copper and Codelco
How Chile became the world's largest copper producer, the role of state-owned Codelco, nationalised in 1971, and why copper prices drive Chile's economy.
Chile is the world’s largest copper producer.
Scale
Copper makes up a large share of Chile’s exports.
Codelco
- Salvador Allende nationalised big copper mines in 1971, with unanimous congressional support.
- Codelco became the state copper giant.
- A law long sent part of its sales to the military; this was replaced in 2019.
Private mines
Foreign firms like BHP run giant mines such as Escondida, the world’s largest copper mine.
Price swings
Copper prices drive Chile’s growth, currency and government revenue.
Future
Copper demand may rise with electric vehicles and power grids.
The copper boom
When China's demand pushed copper prices up in the 2000s, Chile's government revenue surged.
Thinking Chile's economy is diversified away from copper
Copper remains central.
Key takeaways
- Chile is the largest copper producer.
- Codelco was created after 1971 nationalisation.
- Escondida is the largest copper mine.
- Copper prices drive the economy.
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