ABSTRACT
Chile is the principal supplier of copper worldwide with 5.4 million metric tonnes per year, equivalent to 34% of world copper production (COCHILCO 2018). Chilean copper reserves account for 25% of the world (USGS 2018). The most important mining region in Chile is Antofagasta, which represents 75% of the Chilean mining GDP and 75% of Chilean copper production (Banco Central de Chile 2018). During the last three decades, the mining activity in Antofagasta grew in terms of production, foreign investment and new large-scale mining projects (Consejo Minero de Chile 2018).
To date, the mining assets invested account for more than US$30 billion; in the last two decades foreign investment materialized was over US$15 billion; and the contribution to state income topped 25% (considering direct and indirect effects). Resource development is undertaken by a mix both of Chilean state-owned companies such as CODELCO, and major global resource corporations including BHP Billiton, Anglo-American, Glencore, Freeport-McMoRan and Barrick Gold among others.
In this context, Chile and Antofagasta are extremely interesting cases for analysis to understand the potential effect of mining activities on income inequality and SDG 10. Chile has been highlighted as one of the best examples in terms of positive socioeconomic progress in Latin America and as the only country that has already accomplished most of the previous Millennium Development Goals and the target of halving extreme poverty (PNUD 2015). A comparative analysis with other non-mining regions of Chile, shows a relative better socioeconomic performance of Antofagasta (Parra 2012).