Chile has recoverable coal reserves of 1,300 million short tons (Mmst). In 2004, the country consumed 5.7 Mmst while producing 0.4 Mmst. Domestic coal production is located in the Lota/Coronel area and in the extreme south on Tierra del Fuego. The country has two mines, operated by Empresa Nacional del Carbón (Enacar) and La Compañía Carbonífera San Pedro de Catamutún (CCSPC), respectively.

The level of coal consumption has tended to fluctuate, as the power sector, the country's largest coal consumer, uses the fuel largely as a back up to hydropower. In this role, it is possible that coal consumption will rise rapidly in coming years, especially if the unreliability of natural gas imports from Argentina continue. In 2004, most imports came from Australia, followed by Indonesia and Colombia.