Chile

B

Forestry and Fishing

Forests cover 21.5 percent of Chile’s land area. About 46.1 million cu m (about 1.6 billion cu ft) of timber was cut in 2005. Output consists of both hardwoods (such as laurel and oak) and softwoods (such as pine and cedars). Lumber, pulp, and paper are made from the annual timber cut. The forestry industry accounts for about one-tenth of annual exports.

Chile has one of the largest fishing industries in South America. A catch of 5.6 million metric tons was taken in the country’s rich fishing waters in 2004. Principal species include mackerel, anchovy, sardine, and herring. Processing plants pack much of the fish catch for distribution.

C

Mining

Mining continues to play a critical role in Chile’s economy, although it is decreasing as a percentage of exports due to gains in other economic sectors. Chile has some of the world’s largest known copper deposits and is the world’s leading producer of this metal. Copper is the leading export, accounting for more than 40 percent of all annual exports by value. The government owns and operates the giant copper company, CODELCO (Corporacíon Nacional del Cobre de Chile). About 5.4 million metric tons (metal content) were produced in 2004.

Petroleum and natural gas (first discovered in 1945) are extracted on Tierra del Fuego and in the Strait of Magellan. In 2004 Chile produced 2.2 million barrels of petroleum and 1 billion cu m (35 billion cu ft) of natural gas. Iron ore, with production of 5 million metric tons, is the country’s other leading mineral product. Chile also has large deposits of nitrates, zinc, sulfur, and coal, as well as silver, gold, manganese, and molybdenum.

---

---

D

Manufacturing

The manufacturing sector (along with mining and construction) contributes 47 percent of Chile’s annual national output. Manufacturing is largely based on the refining and processing of the country’s mineral, agricultural, and forestry resources. Chile is a major South American producer of steel. Copper is also refined, and the several oil refineries use both domestic and imported petroleum. Other important manufactured goods include food products, cement, pulp and paper products, textiles (cotton, wool, and synthetics), tobacco products, glass, chemicals, refined sugar, and electronic equipment. The assembly of automobiles is also important. The bulk of the country’s manufacturing industry is located near Santiago and Valparaíso. Concepción is the other major industrial center.

E

Tourism

Tourism is of growing importance to Chile’s economy. The country offers a variety of landscapes, from the desolate beauty and salt lakes of the Atacama Desert to the picturesque peaks and Lake District of the Andes Mountains. Among the many national parks is Torres del Paine in the south, a place to see Andean condors, rugged mountain peaks, glaciers, waterfalls, and mountain lakes. Chile also offers a variety of activities. Beaches line the country’s lengthy coastline. Hiking and skiing draw visitors to the mountains near Chile’s cities. Wine-sampling tours are available in the vineyards of the Central Valley. Boat tours from Tierra del Fuego travel past elephant seals and penguin colonies.

Little of Chile’s colonial heritage remains in Santiago, the capital, largely as a result of earthquake damage. But the historic quarter of Valparaíso, which features some of the finest Latin American architecture of the 19th century, is now a UNESCO World Heritage site. The name Valparaiso means “valley of paradise,” and the city’s situation on hills that slope down to the harbor bears out the name. Nearby is the beach resort of Viña del Mar.

F

Energy

The electricity-generating plants in Chile produced 45.3 billion kilowatt-hours of electricity in 2003. The fast-flowing rivers that descend from the Andes and the coastal ranges are rich sources of hydroelectric power. In 2003 about 53 percent of Chile’s energy was generated from waterpower.

	More from Encarta
	•  7 tips for funding an online degree •  How to succeed in the fashion industry without being a top designer •  Presidential Myths Quiz •  Coffee break: Recharge your brain