The World Bank labeled Chile as a high-income economy. It’s one of the few prosperous counties in South America. What explains the wealth and growth of this long, narrow country, stretching along the continent’s western boundary?
Many sectors have contributed to the growth of Chile’s vibrant economy, with exports from the mining sector alone generate more than 30 percent of the country’s income. Although Chile is predominantly associated with copper production and export, gradually gold mining is making a mark.
History of Gold in Chile
Diego de Almagro landed in the country in 1535, looking for gold. Within a decade the Spanish invaders reached Chile in search of wealth. Francisco Pizarro, who captured Peru, entrusted the task of conquering Chile to his lieutenant Pedro de Valdivia.
Valdivia marched into Chile and in 1541 established the Santiago de la Nueva Extramadura City. Valdivia became the first Governor of Chile after the death of Francisco Pizarro. As Governor, Valdivia took on various projects involving construction, agriculture, and gold mining.
Hearing about placer gold, Valdivia started to construct the first gold mine in Marga Marga. The local tribes were already mining gold in the area. Initially, there was stiff opposition from the local tribes. Valdivia’s soldiers overpowered the tribes and within a short period, the first Chilean gold mine started contributing to the Spanish wealth.
Gold production in Marga Marga attracted attention. The mine produced more than 1000 kg of the yellow metal in just 6 years. The growing wealth in the region increased human settlement and mining and other trading activities. Soon, another town – La Serena – came up to support the mining activities in the region.
Gold Mining in Chile in the Modern Era
The rise in gold prices triggered mining activities in the early 1930s. Gold mines that were closed for various reasons were reactivated again. The only new district found during that time was Sierra Overa.
Gold production soared to reach 11.5 tons in 1939. After that, production fluctuated and dipped to its lowest mark of 2 tons in 1960. A decade later the production again picked up after the gold price was liberated.
The government showed renewed interest in gold mining in the latter half of the 20th century. Gold was discovered in Andean Cordillera. Old mines such as the El Bronce vein mine became operational again. Plus, the introduction of new mining methods and advanced technologies supported mining activities in Guanaco, San Cristobal, Marte, Tambo, El Hueso, La Coipa, and Choquelimpie.
Focus on gold mining in Chile paid rich dividends, as the production hit its peak in 1989 to 21.6 tons. In 1996, nearly 150kms from Copiapo, a large gold and copper reserve was discovered. Experts believe, the new gold deposit – Cerro Casale – could well be one of the largest underdeveloped gold-copper-silver mines in the world. A similar discovery, an area containing a large reserve of gold and silver, was made in La Falda.
In 2014, with the gold production touching 50 metric tons, Chile became the fourth largest gold producer in the continent.
Major Gold Producing Mines in Chile
Candelaria Mine: One of the largest copper mines in the country and the world, the Candelaria mine is situated in the Atacama Region. It’s estimated that the mine also contains 3.84 million ounces of gold.
Madre de Dios Mine: One of the oldest placer gold mines in Chile, the Madre de Dios Mine has produced gold since 1556. Records show that between 1898 and 1936, the mine produced about 2.6 metric tons of gold. Currently, the Global Gold Corporation is prospecting gold in the area.
Cerro Casale Mine: Another large gold mine in the Atacama Region. Managed by the Barrick Gold Company, the Cerro Casale mine is believed to contain 58.7 million ounces of silver and 23 million ounces of gold.
El Morro Mine: This is another large copper mine with considerable gold deposits. Owned by the Goldcorp Teck, the mine contains nearly 450 million tons of copper ore with 0.49% copper, and 6.7 million ounces of the yellow metal.
Pascua Lama Project: This open-pit mining project is situated at the border of Chile and Argentina. Located at a height of 4500 meters, the area is mined by the world’s large gold mining company Barrick Gold. A variety of minerals are mined here. The estimated gold reserve here is 17 million ounces.
El Penon Mine: Located in the Antofagasta Region, the El Penon mine is owned by the Yamana Gold Corporation. Experts believe the mine has reserves of 84 million ounces of silver and 2.72 million ounces of gold.
Lobo-Marte Mine: The mine is located in the Atacama Region and is believed to contain 9.77 million ounces of gold.
El Toqui Mine: Previously owned by Barrick Gold, the El Toqui Mine was then purchased by Breakwater Resources in 1997. The mine produces gold and zinc.
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