Mining in Chile Follow the Money Report

Opportunities for Change

The Chilean mining industry, a cornerstone of the national economy and a globally significant copper producer, is witnessing targeted investments across its value chain. These investments are not only aimed at sustaining current production levels but are also carving out opportunities for transformative change, driven by resource depletion, technological advancements, environmental imperatives, and evolving market demands. Analysis of recent M&A activities, corporate investments, and emerging disruptive trends reveals several key areas where capital is being deployed to reshape the sector.

1. Strategic Asset Acquisition and Portfolio Optimization: A significant investment trend is the strategic acquisition of stakes in high-value producing assets. The most prominent example is Codelco's acquisition of a 10% stake in Teck Resources' Quebrada Blanca operation, completed in September 2024. This corporate investment allows the state-owned Codelco to expand its future resource base and production entitlement from a modern, large-scale copper operation. Such moves are critical for major players like Codelco to offset declining ore grades in their mature mines and sustain overall output. This opportunity directly impacts the Exploration & Acquisition, Extraction, Processing, and Commercialization stages of the value chain by reallocating ownership of future production and influencing long-term strategic planning.

2. Intensified Exploration for Future Resources: The industry continues to invest significantly in mineral exploration to secure future resources. In 2024, total mining exploration investment in Chile reached US$794 million, with a substantial US$637.4 million dedicated to copper exploration. This highlights an ongoing commitment to replenishing reserves and discovering new deposits. Successful exploration represents a fundamental opportunity for growth and the long-term viability of the mining sector, primarily influencing the Exploration & Acquisition stage and setting the foundation for future Mine Planning & Development.

3. Capital Investments in Modernization, Expansion, and Sustainability: Major mining companies are allocating substantial capital expenditures towards structural projects, expansions of existing operations, and the development of critical infrastructure like desalination plants. These investments are multifaceted:

   • Sustaining Production: Addressing declining ore grades and the maturation of existing mines requires significant investment in new phases or technologies to maintain output.
   • Efficiency Improvements: Modernization projects often incorporate new technologies to enhance productivity and reduce operational costs.
   • Environmental Mitigation: Investments in desalination plants are a direct response to water scarcity, a critical ESG (Environmental, Social, and Governance) concern in Chile. These projects are vital for operational continuity and maintaining the social license to operate. These investments impact Mine Planning & Development, Extraction, and Processing by upgrading facilities, introducing new methodologies, and ensuring resource availability (like water).

4. Technological Transformation for Enhanced Performance: The adoption of advanced technologies such as automation, digitalization, and Artificial Intelligence (AI) is an area receiving increasing investment. While currently being implemented by incumbent players, this trend offers a significant opportunity to revolutionize mining operations. Investments are aimed at:

   • Boosting productivity and efficiency.
   • Reducing operational costs.
   • Improving safety standards.
   • Enabling operations in more complex or remote environments. This technological shift creates opportunities within the Extraction, Processing, and Logistics stages. It also opens doors for specialized technology providers and could, in the long term, enable new, highly efficient operational models.

5. Commitment to Sustainable Water and Energy Solutions: Beyond desalination, there's a broader investment push towards sustainability:

   • Renewable Energy Integration: Mining companies are increasingly entering Power Purchase Agreements (PPAs) with renewable energy generators. This shift aims to reduce the industry's carbon footprint, potentially lower long-term energy costs, and meet ESG objectives. This impacts energy procurement for Extraction, Processing, and associated Logistics.
   • Sustainable Water Management: Investment in desalination and other water-efficient technologies is critical. This creates opportunities for specialized water management companies and innovation in water transport and usage, primarily affecting Processing and site-wide water logistics.

6. Diversification into Energy Transition Minerals: While copper remains dominant, there's emerging investment interest in minerals critical for the global energy transition. CAP S.A.'s exploration into rare earths is an example, as highlighted in the "New Entrants and Disruptors Analysis." Chile's significant lithium reserves also present a major opportunity. Investments in this area are driven by:

   • High global demand for minerals like lithium, cobalt, and rare earths.
   • Potential for diversifying Chile's mineral exports and revenue streams. This opportunity impacts Exploration & Acquisition (as companies seek new types of deposits) and Processing (requiring potentially different technologies and supply chains).

7. Innovations in Resource Recovery and Waste Management: There is a growing recognition of the potential value in reprocessing tailings and recovering minerals from previously discarded waste materials. The "New Entrants and Disruptors Analysis" points to advanced resource recovery (e.g., from tailings) as a potential source of disruption. While specific large-scale investments in 2024-2025 are not detailed as a widespread movement in the provided context, the challenges of declining grades and the need for improved resource efficiency make this an area ripe for future investment and innovation. This could:

   • Create new revenue streams from waste.
   • Reduce the environmental footprint of tailings storage facilities.
   • Foster the development of new processing technologies and specialized recovery companies. This primarily creates opportunities within the Processing stage.

These investment-backed opportunities signify a Chilean mining sector in transition, actively seeking to address its challenges and capitalize on new possibilities for a more efficient, sustainable, and potentially diversified future.

Key Findings

The following table summarizes the key opportunities for change in the Chilean mining value chain that are currently receiving investment, along with their primary drivers and impacted value chain stages.

Opportunity for Change	Primary Driver/Reason for Investment	Value Chain Stages Primarily Impacted
Securing & Expanding Copper Production Share	Offset declining grades, ensure future production volumes, strategic asset acquisition.	Exploration & Acquisition, Extraction, Processing, Commercialization
Enhancing Resource Base via Exploration	Discover new deposits, replenish reserves, secure long-term supply.	Exploration & Acquisition
Modernizing & Sustaining Operations via CAPEX	Maintain production, improve efficiency, structural projects.	Mine Planning & Development, Extraction, Processing
Technology Adoption (Automation, Digitalization, AI)	Productivity gains, cost reduction, safety improvements.	Extraction, Processing, Logistics
Sustainable Water Solutions (Desalination)	Address water scarcity, ensure operational continuity, ESG compliance.	Processing, Logistics (Water Transport)
Renewable Energy Integration	Reduce carbon footprint, long-term cost benefits, ESG commitments.	Extraction, Processing, Logistics
Diversification into Energy Transition Minerals	Capture value from high-demand minerals (e.g., rare earths, lithium), market diversification.	Exploration & Acquisition, Processing
Advanced Resource Recovery (e.g., from Tailings)	Maximize resource utilization, reduce environmental liabilities, circular economy.	Processing

References

The following sources were referenced in the analyses synthesized for this report:

• Anglo American. (2025, February 25). Anglo American FY 2024 Results.
• Antofagasta. (2025, February 18). FULL YEAR RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024.
• BHP. (2024, August 27). ANNUAL REPORT 2024.
• Cochilco. (2025, February 10). Producción chilena de cobre crece 4,9% en 2024, quebrando tendencia a la baja de los últimos cinco años – COCHILCO.
• Codelco. (2024, October 30). SEPTEMBER 2024 RESULTS. https://www.codelco.com/repositorioavisos/septiembre%202024/presentacion_resultados_septiembre2024.pdf
• Codelco. (2025, March 28). DECEMBER 2024 RESULTS. https://www.codelco.com/repositorioavisos/diciembre2024/presentacion_resultados_diciembre2024.pdf
• Codelco. (2024, December 12). Codelco vuelve al top ten y es la minera con mejor reputación de Chile.
• Grupo CAP. (2025, March 7). Grupo CAP reporta un EBITDA de US$ 569 millones al cierre de 2024.
• International Mining. (2025, April 4). Collahuasi's solid 2024 results plus growth & efficiency plans.
• Lundin Mining. (2025, February 19). Lundin Mining Fourth Quarter and Full Year 2024 Results.
• Plusmining. (2025, February 12). Codelco managed to halt production decline in 2024, but its gap with Escondida shrinks to a historic low.
• Portal Minero. (2025, February 5). Chile lidera inversión en exploración de cobre a nivel mundial.
• Reporte Minero. (2025, February 5). Gasto en exploración minera en Chile cae un 4,6% en 2024.
• The Rio Times. (2025, March 31). Codelco Ends 2024 with Financial Gains but Faces Long-Term Pressures.
• Webstock Inc. (2025, February 7). Chile's Codelco copper company aims to produce 1.391 million mt of copper in 2025.