Alejandro Tapi, the head of Escondida, the world's largest copper mine, stated at a Chilean investment conference held in New York on Thursday that Chile needs to make greater changes in regulation and law to boost investment.
Chile is the world's largest copper producer, accounting for nearly a quarter of global copper supply in 2024. Miners complain about the country's lengthy and delayed regulatory procedures.
With declining ore grades in the country and increasing global demand, substantial investment is needed to boost production and help offset global shortages.
"A significant increase in copper demand could attract substantial new investment to Chile, provided we can ensure legal certainty, fiscal stability, and a modern, faster permitting system."
"I want to outline the core message: by 2050, global copper demand will increase by 70% from current levels. If we want to seize this enormous opportunity, growth, permitting, and environmental legislation should be an urgent priority."
He added, "This is a regulatory issue, and I believe we can improve it to unlock investment."
Escondida, the world's largest copper mine, has announced that BHP will invest US$10 billion in the country if environmental permits are approved. BHP stated that it will commence a 10-year investment plan to optimize its concentrator with US$2 billion.
According to data from Chile's National Copper Commission, Chile's copper production increased by 4.9% to 5.5 million mt in 2024.
Escondida produced 1.28 million mt in 2024.
BHP stated that global copper demand was 31 million mt in 2023 and is expected to increase by 1 million mt annually until 2035.
The Chilean Congress is passing a bill that will expedite several permitting procedures.
