2023 Sees $14.2 Billion Mining Investment, Highest Since 2013

In 2023, mining companies invested a total of $14.214 billion, marking the highest level of capital expenditure in the sector since 2013, when investments peaked at $15.027 billion. This significant outlay was primarily driven by the purchase of property, plant, machinery, and equipment, as well as the development of new projects, according to the latest data from Cochilco's Statistical Yearbook.

The report highlights that much of this investment surge came from large private mining companies, which accounted for $9.819 billion of the total. State-owned mining giant Codelco contributed $4.368 billion, representing 44% of the total capital expenditure.

Several major mining firms have made substantial investments to either increase or maintain their production capacities. Notably, companies like Antofagasta Minerals, part of the Luksic group, have been at the forefront, with nearly $20 billion invested in its Los Pelambres, Antucoya, and Centinela operations over the past two decades.

BHP’s Escondida mine saw concentrated investments between 2012 and 2016, totaling $11.334 billion during that period. Meanwhile, Teck Resources poured $9.160 billion into the development of the Quebrada Blanca 2 project between 2019 and 2023. Additionally, Sierra Gorda, jointly owned by Poland's KGHM International and South32, invested $4.514 billion between 2011 and 2014.

Overall, Cochilco's report reveals that the mining sector, both state-owned and private, has invested a staggering $164.955 billion over the past two decades.

Looking ahead, mining investments are expected to rise further in 2024, driven by significant projects such as Antofagasta Minerals’ ongoing investments totaling $7.5 billion, Codelco’s annual capital expenditures of around $4.5 billion, and the development of major projects like Los Bronces Integrado and the expansion of El Abra, which together require an additional $7.5 billion.

The report also details the disparity in investment levels between state-owned companies. Over the past 20 years, Codelco’s capital expenditures, including machinery and equipment, have reached $57.438 billion. In contrast, the state-owned Enami has seen far lower investment levels, with only $482.7 million spent between 2004 and 2023. The period from 2004 to 2005 was particularly lean for Enami, with capital expenditures of just $7.2 million and $7.3 million, respectively.

Codelco's investment cycle began to rise significantly in 2005, when capital expenditures surpassed $1 billion for the first time in that decade, marking the start of a sustained upward trend in spending.