High commodity prices give Chile’s mining industry reason for optimism: in 2025 alone, companies are expected to invest $8 billion. How can German companies participate?
By Von Stefanie Schmitt
The overall mood in the Chilean economy is subdued. Lack of reforms and increasing bureaucracy are creating tension in the business and investment climate. Mining, however, is an exception: the sector plans to invest billions in expanding and modernizing mines in the coming years.
This is illustrated by Cochilco, a company under Chile’s Ministry of Mining, which anticipates investments of almost US$8 billion in 2025 alone, as reported on its website. This total includes projects classified by the company as highly probable and probable. Most of this investment comes from copper mining, the core of Chilean mining. Cochilco also expects significant investments in upcoming years, as the sector anticipates rising demand and increasing copper prices.
Billions of dollars are being invested in Chile’s mining industry Expected investments in millions of USD 1)
“While it is not certain that all these projects will materialize,” says Ricardo Muñoz, Executive Director of the Supplier Qualification System (SICEP), “it is clear that the mining industry does not share the pessimism of the rest of Chilean industry.” German suppliers could also benefit:
With its significant formal mining sector dominated by national and international corporations, Chile is, in our opinion, a relatively mature market for mining technology. Many of our members have been active suppliers in Chile for many years. They benefit from the sector’s high-quality standards and Chile’s relative openness to imports.”
Cristobal Danner Deputy Director General of Mining and Minerals, German Mechanical
Engineering Industry Association (VDMA)
German companies are present in Chile
Exact data on German participation in Chilean mining supplies is unavailable. However, German companies are clearly more involved than mere export statistics suggest. According to Destatis, German exports of mining-specific machinery and equipment to Chile amounted to approximately €44.5 million in 2023, up 6.7% from the previous year. These include self-propelled machinery, earth-moving equipment, and machinery for sorting, separating, or washing rocks.
Additionally, products such as transport technology, drilling and tunnel boring machines—mostly but not exclusively used in mining—alongside numerous hidden components, significantly contribute to German presence. According to VDMA, engineering firms from third countries like the US, other European nations, or Asia also supply Chile. It’s common, for instance, to have large-scale steel work performed in Brazil.
Demand for new solutions and products
Current changes in mine operations present opportunities for newcomers offering innovative solutions. This includes shifting from open-pit to underground mining and increased pressure for cost efficiency and effectiveness, often coupled with greater automation and digitization.
Sustainability and decarbonization goals add further demands. The circular economy is increasingly important, particularly regarding water usage, mining waste management, and appropriate disposal and recycling of oils, plastics, and tires. Chile’s Waste Management Law (REP Law) mandates increased recycling quotas.
Mining companies set high standards for suppliers
German companies not yet established in Chile have a slight advantage due to Germany’s reputation for quality. However, quality alone isn’t sufficient—consistency and persistence are required.
The mining sector is conservative and risk-averse with suppliers because mistakes are costly. Therefore, new suppliers undergo extensive testing before official approval. However, suppliers who prove reliable are rarely replaced.
Juan Carlos Guajardo
Juan Carlos Guajardo Executive Director, Plusmining
Introducing products the mining sector does not yet recognize as necessary is challenging. According to Ricardo Muñoz of SICEP, “Companies generally respond only when facing a specific problem needing a solution. New technologies lacking identified problems face significant hurdles.”
Mining is just beginning to understand the vulnerabilities posed by increasingly interconnected systems to cyber-attacks or information leaks, despite automation, robotics, or artificial intelligence benefits. Solutions remain pending.
Market entry tips
An essential step for entering the Chilean market is joining the SICEP platform. Private mining companies in Chile typically use this platform to preselect suppliers. The state-owned copper giant, Codelco, has its own qualification procedure.
Generally, partnering with a local Chilean company as a direct contact is beneficial. Since 2013, German-Chilean cooperation on raw materials has been active, including a Competence Centre for Mining and Raw Materials at AHK Chile and the organization of an annual Raw Materials Forum. The next forum is scheduled for October 2025 in Berlin. Additionally, alternating exhibitions Expomin (2025 in Santiago) and Exponor (2026 in Antofagasta) are held.
Support is also available from Chilean mining supplier associations APRIMIN and SUTMIN, alongside regional organizations like AIA (Antofagasta), AII (Iquique), and CORPROA (Atacama).
Source: Gemany Trade & Invest