Chile is the world’s largest Copper producer, with an estimated copper production of 5.7 million metric tons in 2020. The world’s second-largest producer of copper in Peru, which produced an estimated 2.2 million metric tons of copper in 2020. Since the early 90s, Copper Mining has been playing a significant role in the economic prosperity of Chile. Here are some examples of how copper mining is affecting the economy of Chile.
Impact Of Copper Mining On Country’s Export
Chile’s copper mining industry has made a huge impact on the country’s export. Chile exports copper worldwide, and it became the major export of Chile in the last 3 decades. By centralizing a great natural resource export model, Chile has substantiated itself to overcome poverty.
Around $20 billion of the national economy is represented by copper mining supplier companies. The mining companies like Three Valley Copper Corp. TVC.V has provided benefits to local communities that also contribute directly to the country’s economy. Three Valley Copper stock is increasing at a high pace because copper consumption is growing. The company focuses on copper production growth and exploration services
In 1998 the rate of economic activity by copper mining in Chile was 3.6%, and it became 19.6% in 2006. The copper mining industry has created thousands of employment opportunities in Chile. In 2016, 388,754 jobs were created, equal to 5.4% of Chile’s total workforce. Out of those 388,754 jobs, 170,594 jobs were not direct mining jobs. As a result, the mining industry has played a huge role in eradicating poverty in Chile from 1990 to date. In 1990 the rate of poverty was 40.5% which decreased to 8.5% in 2015.
Contribution To The GDP
Copper mining is directly affecting Chile’s GDP, contributing to the economy of the country. The copper mining industry of Chile represents 10.9% of the country’s GDP. The industry provided 7.8% of tax revenue for the country between 1990 and 2016. Within some regions of Chile, copper mining as a percentage of GDP became a game-changer in economic development. Antofagasta is one of those regions with 63% of the national production every year between 2008 and 2014. The economic growth due to the mining industry in Chile is not limited to the Provincial income but also has a huge impact on labor and wages.
The copper industry also contributes to the consumption of goods in other industries, producing a great multiplying outcome for the economy. In addition to copper production, mining yields many useful by-products, including rhenium, selenium, tellurium, cobalt, tungsten, lead, zinc, silver, and gold. According to research, every US $100 contributed by copper mining indirectly generates another US $36.
Conclusion
Economic reforms, the latest milling technology, and huge investment allowed Chile to become the world’s largest copper-producing country. Compared to other industries, copper mining is the most resourceful economic sector in Chile, with a huge impact on the country’s economic growth. Copper mining companies provided employment and help to increase the standard of living.
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