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In BHP’s centennial anniversary publication, BRW journalist Alan Deans reflected on how the acquisition of Utah International in 1984 would take the Big Australian beyond its domestic origins and open new opportunities overseas.
“The development with most promise, however, is the La Escondida copper deposit in Chile,” Deans wrote. It was a prescient observation.
Decades later, Escondida has become the world’s largest copper-producing mine, with Australian mining giants BHP and Rio Tinto holding substantial interests in an operation that helped establish Australia’s enduring commercial relationship with Chile’s resources industry.
That relationship between BHP and Chile has continued to grow over the past four decades, and it has broadened to encompass industry-wide relationships across commodities beyond copper like lithium and other critical minerals.
Meanwhile, Australian junior explorers such as Flagship Minerals are pursuing opportunities in Chile’s copper and gold districts, attracted by the country’s geological potential, established infrastructure and investment environment.
Against this backdrop, Australia and Chile are working towards a strategic partnership aimed at expanding cooperation in investment, trade, technology and innovation.
The question is how this longstanding relationship can translate into the next generation of mining investment opportunities.
A relationship built on mining
Chile’s Ambassador to Australia, Beatriz de la Fuente, sees considerable scope for Australian companies to expand their involvement in the country’s resources sector.
“Australia and Chile should be seen as natural partners, not competitors,” de la Fuente told ARI.
The investment proposition rests on complementary strengths: Chile’s substantial copper and lithium resources and Australia’s mining capital, technical expertise and technological capabilities.
Australian explorers and developers could benefit from closer commercial ties, while mining technology companies have opportunities to support mineral processing, resource recovery and more sustainable production.
The relationship could deepen following an announcement by Australian Foreign Minister Penny Wong and her Chilean counterpart Francisco Perez that the countries would begin working towards a Strategic Partnership.
Although its scope remains to be defined, de la Fuente believes the arrangement could encourage greater investment flows, technology exchange and joint projects.
Chile’s Choose Chile initiative, which aims to diversify export markets and attract international capital, provides another avenue for Australian participation.
Together, these developments could broaden the investment opportunity beyond direct exposure to commodity prices, creating openings for companies developing mineral projects and technologies that extract greater value from existing resources.
Why Australian companies choose Chile
For junior explorers, Chile’s appeal lies in the balance between political risk, operating costs and access to established mining infrastructure.
Flagship Minerals managing director Paul Lock believes these factors make the country an attractive jurisdiction for companies seeking projects capable of attracting institutional investment.
“One of the biggest risks I look at with projects is political risk,” Lock told ARI.
He argues that political instability can be particularly damaging for junior explorers, which often depend on a single principal asset and have limited capacity to absorb unexpected regulatory or sovereign risks.
While Australia offers a comparatively stable operating environment, its high costs can constrain project economics. South-East Asia offers lower costs, but population density can make securing large-scale exploration opportunities difficult.
Chile, Lock believes, strikes a more attractive balance.
“What we see in Chile is that it’s got a great balance. There’s a huge skill set there because it’s a big, particularly copper mining country,” he said.
The country’s extensive mining industry also provides access to equipment suppliers, specialist contractors and technical expertise, reducing some of the logistical challenges associated with developing projects in remote locations.
Flagship’s focus on copper and gold reflects its ambition to attract institutional investors seeking exposure to commodities with deep, liquid markets.
Lock said scale was central to that strategy, with Chile offering geological opportunities capable of supporting larger projects.
Its established mining laws and relatively competitive operating costs further strengthen the investment case, although project economics remain dependent on factors such as infrastructure, resource quality and development requirements.
“Savvy investors look at Chile and understand that as an investment jurisdiction, it is a place where your investment is reasonably safe. From a legislative perspective and political risk perspective, it’s as safe as Australia.”
The next generation of projects
Flagship’s northern Chilean portfolio illustrates how Australian juniors are seeking to build on the country’s established mining industry.
Its Rosario copper-silver project lies approximately 10km north of Codelco’s El Salvador copper mine, which has operated since 1959.
The pre-drill project has returned high-grade surface samples and covers approximately 15km of prospective strike, providing Flagship with an early-stage copper exploration opportunity.
While Rosario remains part of the company’s longer-term strategy, its immediate priority is Isidora, an advanced oxide gold project in the Maricunga Gold Belt.
Acquired in April 2025, Isidora hosts a JORC 2012 resource of 115.2 million tonnes grading 0.56 grams per tonne gold for 2.1 million ounces, supported by more than 20,000m of historical drilling.
Lock believes the project’s more advanced status offers shareholders a clearer pathway to value creation than earlier-stage exploration.
Nevertheless, Isidora presents challenges, particularly its altitude of more than 4000m, relatively low gold grades and the availability of water in Chile’s arid north.
These factors will be central to determining its development potential.
The project benefits from proximity to established mining operations and service centres, including Copiapó, where equipment suppliers and technical expertise support the regional industry.
Flagship’s strategy highlights the different opportunities available to smaller Australian companies, from early-stage copper discoveries to more advanced gold developments.
Chile’s investment reform agenda
Chile is seeking to strengthen its appeal to international mining capital through reforms designed to improve regulatory certainty, accelerate project approvals and encourage exploration.
Vice Minister of Mining Álvaro González said the country’s established legal framework and long-term mining policies provide a foundation for attracting Australian investment.
“For Australian companies and investors considering opportunities in Chile, one of our key strengths is our institutional stability,” González told ARI.
Under Chile’s National Reconstruction Law, qualifying investments exceeding $US50 million may access tax stability agreements lasting up to 20 years, depending on their scale.
Eligible mining investments may also receive protection against future increases in royalties, sector-specific taxes and mining concession fees.
Such measures could improve the predictability of project economics, particularly for capital-intensive developments with lengthy construction and operating periods.
Chile is also implementing its Framework Law on Sectoral Authorizations, designed to eliminate duplicated requirements, establish clearer approval deadlines and simplify permitting procedures.
Certain lower-risk activities can proceed through statutory declarations, subject to regulatory oversight, while environmental, safety and mine closure obligations remain in place.
Capital-market reforms could prove particularly relevant to Australian junior explorers.
A proposed dedicated junior mining market segment, drawing on international models, could create additional pathways for exploration companies to raise capital.
Complementary initiatives include targeted exploration tax incentives and improved access to geological information through Chile’s geological agency, SERNAGEOMIN.
These measures aim to reduce barriers to financing and encourage investment in new mineral discoveries, although their effectiveness will depend on implementation and investor uptake.
The broader objective, González said, is to attract capital that strengthens Chile’s long-term mining capabilities.
“We want investment that brings knowledge, and knowledge that stays in Chile, strengthening our capabilities and creating opportunities for future development.”
Technology and value-chain cooperation
Beyond exploration and mine development, closer bilateral ties could open opportunities for Australian mining equipment, technology and services (METS) companies.
Vice Minister Álvaro González identified automation, artificial intelligence, remote operations and digital mine management as areas where Australian expertise could improve productivity and safety across Chile’s mining industry.
The commercial relationship is also working in the opposite direction, with a Chilean delegation attending IMARC 2026 in Sydney this week.
Led by Auscham, AndesMETS and ProChile, with support from Chile’s Ministry of Mining, the delegation includes companies providing mining technologies, equipment and specialised services aimed at improving industry efficiency, competitiveness and sustainability.
Existing research partnerships provide a foundation for further collaboration, including the University of Queensland’s Sustainable Minerals Institute Chile, which has operated for more than a decade, and the JKTech model of commercialising mining research.
Ambassador Beatriz de la Fuente also sees potential in recovering valuable minerals from mine waste, recycling and developing higher-value products.
These exchanges could create opportunities for Australian and Chilean technology providers to enter new markets, establish commercial partnerships and capture more value across the mining supply chain.
What comes next
Chile’s investment ambitions will take centre stage at the inaugural Choose Chile Summit, scheduled for 15–19 March 2027, bringing international investors together with government and industry representatives for business forums and visits to mining, energy and logistics projects.
Beyond the summit, progress on regulatory reforms, exploration financing and new project commitments will help determine whether closer Australia–Chile cooperation translates into tangible investment opportunities.
For Lock, the underlying attraction remains straightforward: copper and gold offer the scale and market depth sought by institutional investors, while Chile combines geological potential with established mining infrastructure and comparatively competitive costs.
Decades after Escondida first attracted Australian mining capital, those fundamentals continue to draw the next generation of explorers to Chile.
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