Chile has a limited exploitation of it's domestic energy resources. As a result, the country must import the bulk of its energy needs. Chile's growing reliance on energy imports, particularly on natural gas, has not been without consequences. In April 2004, Argentina began restricting natural gas exports to Chile, with cuts reaching nearly 50 percent of contracted volumes on some days. Chile, in turn, began to reconsider its energy policy, which, prior to the import restrictions, had assumed an increased use of natural gas and power imports from Argentina. Most importantly, Chile has begun to pursue other sources of natural gas, such as liquefied natural gas (LNG) or piped gas from other countries.

The sustained growth of the Chilean economy of around 6.3% over the past years has implied a continuous growth in energy demand in the country. This has led to the saturation of the capacity of the largest national grid, the Central Interconnected System, or the "SIC". On the other hand, the real growth of mining installations in the northern regions of the country, probably the largest mining and mineral exploitation zone in the world, together with the projected investments in this sector (estimated at US$9,600 million before 2008), mean an enormous demand for energy in the next few years. This implies a rapid growth in the activity of energy generation for this zone, and the supply from the Northern Interconnected System, or "SING".

The relation between Chilean energy demand versus installed capacity and the insecurity in the production of electrical energy has required the Government to make concrete efforts to stimulate the sector, especially to all renewable energies, as well as the stimulation of large projects focusing on the sectors of hydroelectricity and cycle combined thermoelectric. In the next few years an increase of 5.4 GW of generation is expected in the SIC. This will not be free of problems due to the natural resistance to the use of the large water-bearing reserves of the rivers in the south of the country, together with the instability of natural gas supplies, which have been severely damaged by the latest actions of the Governments of neighboring countries, Argentina and Bolivia, possessors of large natural gas resources but whose supply is not guaranteed for Chile.

The Government of Chile backs a rapid increase in the capacity of growth in the supply of non-conventional renewable energies, especially mini-hydro, wind, solar, geothermal and biomass, without discarding other sources, anticipating to attract investments that will mean installations of no less than 500 MW before 2009.

More than 800 million international trips were made in 2005, creating more than US$682 billion for the global tourist industry. The Chilean government aims to increase the number of tourists entering Chile from 2 million currently to 3 million by 2010. To this end, it welcomes foreign investors, offering them the guarantees they need to develop their projects.

Chile's competitive advantage lies in its wide array of stunningly beautiful natural habitats, including the lunar landscapes of the desert in the north, lakes and volcanoes in the south and the pristine glaciers and forests of Patagonia. It is, in fact, a nature reserve in its own right, still largely unexplored and in its original state. Its geographic location in one of the earth's most remote places, bounded by the Andes Mountains and bathed by the Pacific Ocean, makes it a highly attractive destination for the world's modern adventurers.

In the north, white sand beaches contrast with the arid Atacama Desert -the driest place on earth and the home of ancient cultures- while the area's skies, known as some of the clearest in the world, offer a privileged window on the complexity of the universe.

Moving south, the Mediterranean landscape of central Chile offers fertile valleys, seaside resorts and centers for winter sports. This is the area that produces most of the splendid wines for which Chile has become internationally famous. And the magnificent south is home to volcanoes, rivers, glaciers and centuries-old woods that -in increasing splendor- extend down to the virgin beauty of Patagonia and the vast expanses of the Antarctic.

The islands off the coast of Chile are best known for the exotic beauty of Easter Island, the magic of Chiloé and the unique vegetation of the Juan Fernández Archipelago.
Set against this natural backdrop, a number of special-interest tourist activities enjoy important growth potential. These include fishing, rafting, mountain climbing, trekking, water sports and astronomy, as well as nature tourism and expeditions to volcanoes and glaciers.

For these reasons, President Michelle Bachelet, aware of the value of the country's natural attractions, aims to transform these assets into progress. She has stated her desire to make Chile a major tourist destination, and announced that a large amount of funding is being allocated in making this happen. More than US$5 million has been allocated to advertising Chile in a number of different countries in 2007 including Germany, France, United Kingdom, Spain and the United States.
Currently the main focus is on special-interest tourism and ecotourism, being the areas in which world demand is constantly growing.

In P4 we are conscious of the importance of stimulating investment in Chilean tourism, and to this end we have formed a strategic alliance with Tourism Resource Consultants New Zealand.

TRC counts on more than 30 years of experience in the development of the tourism sector – please refer to this agreement clicking on the .pdf icon.

Chile is already a major food exporter. Industries, such as salmon farming, winemaking and fresh fruit production, that hardly existed just a quarter of a century ago, have grown into multi-million dollar businesses that claim an important share of world markets.

With food exports topping US$8 billion in 2005, Chile now takes 17th place among the world's food providers, ranking between Argentina and New Zealand. And, as the country's network of free trade agreements opens up new markets, the country's agricultural industry is widely expected to take a great leap forward.

Authorities in both the private and public sectors now talk of Chile emerging as one of the world's top ten food exporters over the next decade. That would mean roughly doubling the value of the country's food exports to US$15 billion to stand shoulder-to shoulder with the likes of Spain or Australia.

Mining is expected to continue to grow 5 percent annually through 2007, with projected investments exceeding $6 billion during the same period.

Chile's exports are supported by the output of a well-developed industry, which uses state-of-the-art production technology, particularly in copper mining. Mining production will continue to lead Chile's economy with significant foreign and domestic investment in developing new mines and/or modernizing and expanding existing ones. The state-owned mining company, CODELCO, is the world's largest copper producer, but privately owned mines (including those with international ownership) account for about half of Chile's copper production and look to increase their share of the market steadily.

The local mining supplies market exceeds US$1 billion and is expected to grow at an annual minimum average of 10% for the next 5 to 8 years.

Market demand in Chile is mostly project-driven and highly influenced by the international price of mineral commodities. As one of the largest markets for mining equipment and services in the world and the most open market in the region, Chile attracts suppliers from all over the world that sell prime quality products that compete openly not only on price, but mostly on value added-services for their clients and end-users. Identifiable mining projects call for investments exceeding US$ 18 billion. These include those currently under study and those scheduled to start development and construction within the next 5 to 7 years and be operational by 2012-2013. CODELCO would remain the largest investor in this industry with US$12 billion. The price increase of copper (US$0.65/lb in 1998 to a peak of US$2.347/lb (March 20, 2006)) has also driven demand up.

Between 2003 and early 2006, the number of active mines has jumped from 70 to 220.