Mining cycles have had an enormous impact in the evolution of the localisation of economic activity, in particular of industry, in Chile. The nitrate cycle was characterised by a labour-intensive extraction process and activity which was geographically very concentrated. The copper cycle was geographically more dispersed and its activity more capital-intensive. We stress the role played by the State in the latter de-concentration due to the impact of regional development policies and assess the importance of factor endowments and agglomeration economies, in the localisation of the manufacture.