Abstract

Mining is one of the oldest and most important productive activities in Chile. In the latter half of the 80's and during the 1990's Chilean mining has experienced explosive growth fundamentally due to legislative changes which have encouraged an influx of foreign capital. Fine copper production has grown from 1,4 million tons in 1987 to 3,4 million tons in 1997. Gold production has increased from 17.03 tons in 1987 to 49.46 tons in 1997. In both cases private investment has driven this growth. The direct impact of mining on the Chilean economy has been considered one of the fundamental pillars of the growth of the country in the last years. The indirect impact that has generated on the other sectors of the Chilean economy and in particular the regional economies, has not been analyzed. This paper outlines a methodology for estimating the impact of mining investment and mining operations in different sectors of the Chilean economy at both regional and national levels. It applies this methodology to the case of Minera Escondida, the largest copper mine in the world, analyzing its economic impacts on the regional and national levels.