Development and Strategic Growth of a Major Mining Enterprise in a Developing Country: The Escondida Story

One distinctive feature of the global mining industry approaching the twenty-first century is the worldwide commitment of mining houses to large-scale projects in developing countries. One good example is BHP's development of the Escondida copper project in Chile. The Escondida orebody was discovered in 1981 and construction began in July 1988. Mining began in December 1990 at a design capacity of 320 000 tonnes of copper contained in concentrate. Out put has grown significantly and shortly Escondida will become the largest single copper mine in the world producing copper at the rate of 800 000 tonnes per annum, including 80 000 tonnes of copper metal. Escondida provides a case study of the development and growth of a large-scale mining operation in a developing country. Key elements have been innovative financing, the management of country risk, the recruitment of an excellent workforce, the use of advanced technologies and best practice in environmental management and community relations. Escondida is one of the global mining industry's success stories in the 1990s.