In Chile's Copper Boom, Miners Spread the Wealth

Since starting work at the Esperanza copper mine in northern Chile two years ago, Erick Moreno has tripled his salary and is preparing to buy his first home. The pay, he says, is so good that he’d never take another job. “I am going to die in this industry; I don’t see myself anywhere else,” he says. While Moreno finished his engineering studies at the University of Antofagasta, he says many fellow students dropped out to work in the copper mines. Most of them already own their homes and drive sports cars.

Spending by miners is spreading through Chile’s economy, fueling a consumer boom and driving unemployment down to 6.2 percent in the second quarter, the lowest rate since 1973. The nation has become the wealthiest in Latin America, according to the International Monetary Fund, with per capita gross domestic product rising to about $16,300 this year from $4,780 10 years ago. The growth of copper mining and shortage of skilled workers mean many miners earn bonuses in excess of $30,000 for signing new contracts every two or three years. Mining giant BHP Billiton says truck drivers at its Escondida mine get paid the equivalent of $80,000 a year, excluding bonuses, more than their counterparts in the U.S.