By Alicia Gutiérrez | 2025-02-21

SANTIAGO -- The recent discovery of substantial copper reserves on the Tibetan plateau has created uncertainty in Chile's mining industry.

China on January 6 announced the discovery of four significant copper deposits on the Qinghai-Tibet Plateau: Yulong, Duolong, Julong-Jiama and Xiongcun-Zhunuo, according to the Chinese state-run Global Times.

These deposits collectively hold over 20 million metric tons of copper resources, potentially reaching up to 150 million tons.

"The region is poised to develop into a world-class copper resource hub, changing the landscape of copper mine exploration and development in China," the newspaper said, citing the China Geological Survey.

Representatives of Chile's mining sector are closely monitoring China's recent discovery in Tibet, expressing concern over the potential depreciation of domestic copper -- a commodity often referred to as "Chile's salary."

While some experts believe the immediate impact may be minimal, the geopolitical context and China's commercial strategies keep the Chilean market vigilant.

This caution is heightened by the events of 2024, when China's steel dumping practices led to the closure of Chile's largest steel mill, Huachipato, after 74 years of operation, resulting in significant economic repercussions.

'It is not good news'

Manuel Viera, president of the Chilean Mining Chamber, expressed concerns over China's recent copper discovery in Tibet, highlighting the potential impact on Chile's mining industry.

"I am concerned about the magnitude of what has been discovered on the Tibetan plateau. It is a huge territory; imagine the size of Argentina," Viera told Entorno.

"What worries me most is how this will affect Chile," he said. "It is estimated that there are around 150 million tons of copper on that plateau, the same reserves we have in Chile. This is not good news for us; we must be very attentive to what happens there."

Chile's copper reserves are estimated to be between 150 and 210 million metric tons, according to local mining authorities. This range is consistent with data from the US Geological Survey, which estimates reserves at approximately 190 million metric tons as of 2022.

Viera also highlighted environmental concerns associated with mining in Tibet.

"There are many mineral resources there, especially copper, lithium and other rare earths," he said. "It is a great challenge for humanity because we could benefit from these resources, but mining in that area could be devastating for the environment."

Intensive mining activities in Tibet, particularly near river systems, have led to significant heavy metal contamination, according to various scientific studies.

The extraction of minerals such as copper, lithium and other rare earths in Tibet poses substantial environmental challenges because the region serves as the source for major Asian rivers.

From ally to adversary

China's growing reserves could pose future economic challenges for Chile, said Sascha Hannig, a Chilean international affairs analyst.

Hannig, author of the study "FTA with China: Copper Monoculture, Limited Diversification and Hidden Dependency," highlighted China's strategic approach to its natural resources, noting that the country has chosen not to massively exploit its natural reserves.

Instead, China continues to import copper and other materials from Latin American countries, which in turn intensifies their dependence on the Chinese market.

Hanning further emphasized China's influence on the global copper market.

"China, due to its demand for Chilean copper and also due to some agreements... its demand sets the tone for the market," she told Entorno.

Hannig expressed concerns about China's impact on Chile's refining and manufacturing sectors, noting that "China only buys raw copper to process in its steel mills."

"Chile has no real reason to optimize its industry, which in the long term has ultimately caused the Chilean industry to remain based on very basic elements," she said.