DT17 | The Illegal Copper Economy

This document is the second work in the study series on illegal economies, the first publication of which presented the factors that facilitate the actions of organized crime in Chile.

In this sense, the purpose of this report is to review the illegal copper economy, how it operates, and whom it affects, in order to understand its impact and how it constitutes a significant public security problem. This is based on the reality that Chile is the world’s largest producer of this raw material.

This research was developed from the limited information available in media, interviews, and specific reports from organizations related to mining.

In the context of this work, a review of the illegal copper activity was conducted from the perspective of organized crime and its facilitators presented in the first document of the series. Once this was defined, the crime of copper theft itself was examined, its impact on critical infrastructure and the security problem it generates, and then the existing responses were analyzed and recommendations proposed.

Copper theft occurs in the form of cathodes, concentrate, and cables. In the case of cable theft, critical infrastructure for energy transmission and telecommunications is additionally affected. The first two impact an economic sector that makes a fundamental contribution to national development.