Chile’s mining sector is poised for significant changes following the inauguration of President José Antonio Kast on March 11, 2026. The Republican Party leader’s administration may introduce regulatory reforms aimed at enhancing security and operational efficiency in the country, which produces approximately 25% of the world’s copper supply. Mining accounts for 11% to 12% of Chile’s GDP and over 20% when considering indirect contributions.
One of Kast’s first actions was the merger of the Mining and Economy ministries, appointing Daniel Mas to lead the newly combined portfolio, despite concerns regarding his lack of mining experience. The mining sector is expected to attract about $105 billion in investments by 2034, though an inefficient permitting system exacerbates project delays—one project may require over 500 permits. Analysts report a decline in copper production, which fell by 2% year-on-year in 2025, with projections suggesting output could drop to around 4.4 million tonnes by 2034 without new developments.
Additionally, as global demand for copper and critical minerals steepens, Chile faces geopolitical implications in its mining policies. Kast’s foreign policy signals align with the US while maintaining ties with China, the primary trading partner. The incoming administration must focus on reforms to streamline investment and production, which industry leaders believe are crucial for sustaining and enhancing Chile’s position in the global mining landscape.
