Chile’s Gold Output Surges to Decade Highs on Major Mine Expansions

Chile is poised to reclaim its position as a top global gold producer, with production hitting levels unseen since 2016, driven by new mining projects and strategic investments.

The Salares Norte mine, operated by South Africa’s Gold Fields, began operations in 2024 and is projected to produce 580,000 ounces (16.4 metric tons) of gold in 2025 alone.

This single project could elevate Chile’s total output by over 40% compared to 2022 levels, potentially pushing the country into the world’s top 20 gold producers.

Salares Norte, Chile’s first greenfield gold project in a decade, represents a $1.2 billion investment and is expected to generate 900 permanent jobs. Over its 11-year lifespan, the mine will contribute $800 million in taxes and operates at a low cost of $790 per ounce.

Gold Fields has also committed $30 million annually to exploration near the site, aiming to extend its operational timeline. The mine’s impact is immediate: Chile produced 30,966 kilograms (30.97 metric tons) of gold in 2022, but Salares Norte’s 2025 output alone would surpass half of that figure.

Chile’s Gold Revival

Additional projects are amplifying growth. Rio2’s Fenix Gold mine, under construction in the Maricunga belt, holds 1.77 million ounces of reserves and aims to produce 1.8 metric tons annually by 2026.

Kinross’s La Coipa Phase 7 extension, backed by a $113 million investment, will add five years to existing operations. These developments mark a shift toward dedicated gold mining in a country where 70% of gold is typically a copper byproduct.

Chile’s gold sector faces long-term challenges despite recent gains. Mining investments focused on gold dropped from 19% of total sector spending in 2012–2024 to just 2% for 2024–2033, reflecting bureaucratic delays and shifting priorities.

Yet, the current rebound aligns with gold’s 25% price surge to over $3,500 per ounce in 2025, driven by geopolitical uncertainty. Historically, Chile produced 54.1 metric tons of gold in 2000 but saw output decline to 30.97 metric tons by 2022.

The 2025 resurgence signals a structural shift, with experts emphasizing that streamlined permitting could unlock further projects like Kinross’s Lobo-Marte.

As global demand for safe-haven assets grows, Chile’s mining sector is positioning itself to capitalize on renewed interest in one of the world’s oldest forms of wealth.

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