Copper output slump drags Chile’s economy into contraction

Chile is still the world’s largest copper producer, but troubled mining projects are undermining the economic support provided by the nation’s dominant industry.

Data from the Central Bank of Chile show copper exports fell about 4% year-on-year in October. And recently, record-high prices have not been enough to offset declining output trends. Lower ore grades at Escondida and a weather-related shutdown at Los Pelambres have weighed on production.

Copper directly accounts for 11% of Chilean GDP. This crucial industrial metal accounts for more than half of the nation’s goods exports; about a fifth of copper consumed globally comes from Chile.