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Chile’s government is looking to accelerate one of the largest mining investment pipelines in its history, with projects worth more than US$100 billion currently awaiting approvals across different stages of evaluation.

Minister of Economy and Mining Daniel Mas Valdés is leading the effort, focusing on faster permitting and clearer rules for investors. Mining remains central to the country’s economy, accounting for about 59% of total exports, and rising global demand for copper and lithium could provide a major opportunity.

Many of the projects in the pipeline are already well advanced but remain tied up in regulatory processes. Without quicker approvals, Chile risks falling behind other mining jurisdictions competing for the same capital.

Permitting Reform Takes Priority

A key part of the strategy is the rollout of the Framework Law on Sectoral Authorizations, known as the MAS Law. The reform aims to simplify permit processing by replacing certain permits with declarations and notifications.

The first phase is expected to streamline around 200 procedures and reduce permitting times by roughly 30%, while maintaining environmental standards.

Delays in the system have been a longstanding concern. Projects that promise significant employment and investment have often spent years in permitting and regulatory processes. The goal now is to simplify those processes, reduce delays, and provide faster responses.

Investment Signals Begin to Shift

There are early signs of increased activity. In the first weeks of the new administration led by President José Antonio Kast, who took office last month, mining projects worth more than US$17 billion have entered Chile’s environmental review system.

This suggests that investor sentiment is improving after a period of caution. Confidence has been closely tied to regulatory certainty, particularly for large-scale projects that require long-term commitments.

The next challenge will be keeping these projects on track through the approval process and into construction.

Structural Pressures on Production

At the same time, Chile’s mining sector faces ongoing structural challenges. Ore grades at existing deposits have been declining, raising costs and reducing productivity. Many operations are also transitioning from open-pit to underground mining, increasing technical demands.

Copper production has remained largely stable in recent years at around 5.4 million tonnes annually. Increasing output will depend on expanding current operations and advancing new projects awaiting approval.

There are also concerns about limited domestic smelting and refining capacity, which affects the amount of value retained within the country.

Technology and New Resource Potential

Future growth is expected to rely in part on technology. Mining companies are increasingly investing in more efficient water and energy use, including desalination and renewable power, to support operations in arid regions.

The Ministry of Mining has also made it a priority to advance the valorization of tailings and secondary minerals. These materials previously had little or no economic value, but advances in processing are making them more viable.

Expanding exploration is another priority, with a focus on finding new deposits with higher grades to offset declines in existing mines.

Project Pipeline Depends on Approvals

Chile continues to benefit from strong geological resources, established infrastructure, and a skilled workforce. These factors have long supported its position as a leading mining country.

With more than US$100 billion in mining investments under evaluation, the pace of permitting and regulatory approvals will determine how many projects ultimately move forward.