The red mitosis in Chile

The large copper mining industry in Chile is suffering mitosis… this industry in Chile is evolving its DNA to create two different copper industries; the old-style one, accustomed to big gains delivered by nature, and a new copper mining industry, which must compete in multiple areas of management and efficiency. As with any mitosis, it is creating suffering, but at the same time, It allows the growth of the new mining industry.

The new Copper mining industry in Chile has some characteristics that can help to identify it. It is fully embedded in the urban centers, the copper grade is below 0.5%. It is significantly more demanding in environmental control and is naturally forced to use cutting-edge technology to be precise, productive, low margins, environmentally friendly, and no error is acceptable. Any mistake can imply a risk of big losses in many areas.

The current prices and market conditions are just a challenge and good testing for this new mining industry, maximize return, and prepare for the future.

The old-style copper mining industry, far from urban centers, with copper grades around 1% , with a lack of efficiency supported by big pockets, surviving with suppliers focused on price and large workforces, is now doomed.

The new mining industry requires that its workers, engineers, and executives, drastically modify their mindset to be prepared for this long-term significant challenge, also technical centers, universities, and suppliers of goods and services must reinvent themselves to transform this new industry in progress and benefit the community, shareholders, and stakeholders... but also to survive...permanently.

Suppliers also need reinvention. The old-style suppliers are not effective enough to support the new mining industry, neither in cost, inefficiency nor in productivity or creativity. Disruptive suppliers are required!

The mitosis is in progress.