Chile's mining industry has lagged behind domestic economic growth

Published: Jul 8, 2019 11:44

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Chile's economic activity rose 2.3 percent in May from a year earlier, but Chile, the world's leading copper producer, continued to lag behind in mining, the central bank said on Friday. Copper production fell 1.2 per cent to 492322 tonnes in May compared with the same period last year, mainly due to a continued decline in ore grade.

SMM7, March 8-the Bank of Chile said on Friday that Chile's economic activity in May increased by 2.3 percent compared with the same period last year, but Chile, as a major copper producer in the world, its mining industry continued to lag behind.

Copper production fell 1.2 per cent to 492322 tonnes in May compared with the same period last year, mainly due to a continued decline in ore grade.

The problem of declining ore grade is already so serious in Chile that the Bank of Chile cited the problem as a key reason for lower-than-expected economic growth in the region.

Pablo Terrazas, Chile's vice-minister of mining, had previously said that major Chilean mining companies were now undergoing structural reforms aimed at maintaining production rather than increasing it. At the same time, it said that in view of the imminent supply shortage, Chile needs new projects and new mineral deposits.

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