Since the late 1990s, Chile has been cementing its much-deserved reputation as a model of stability in a region that has been prone to economic turmoil. Consistently ranked towards the top of global surveys of stability and economic freedom, Chile has seen a solid GDP growth of 5% over the last five years, while inflation and unemployment levels are the envy of struggling European nations.

The role that mining, and particularly copper mining, has played in this development cannot be overstated: “It has been estimated that for every dollar invested in mining, between $7 and $13 are spent on infrastructure and associated support services. The upshot of all this is that Chile now has one of the best developed infrastructure systems on the continent,” said Colin Becker, partner at PricewaterhouseCoopers.

While the economy is gradually becoming more diversified, with important roles played by the forestry, wine and tourism industries, there is no denying that copper is king. The red metal now makes up some 20% of GDP and 60% of total exports and, with over 28% of the world’s reserves, Chile has prioritized the copper trade above all others. The country now accounts for 32% of global production and Corporacion Nacional del Cobre (Codelco) remains the largest copper producer in the world. Still, costs are higher for both wages and energy, companies are confronted with lower grades as well as lower prices and Chile’s crown might not be as secure as it once seemed.