Early Coal Mining in Chile The mining and exportation of mineral products have long played a major role in the economy of Chile. Coal mining began in the early 1840s near Talcahuano to provide fuel to a growing number of steam-powered ships. At first, coal was transported out of the mines by horse-drawn wagons. A dramatic transformation of the industry began to take shape with the acquisition of extensive tracts of land in central Chile by Matìas Cousiño, the man credited with introducing industrialization to Chilean coal mining. In 1852, Cousiño hired the English engineer William W. Stephenson who determined that the region contained huge coal reserves that could be successfully extracted from under the Pacific Ocean where it meets the Chilean coast. Miners from Britain came to Chile in 1856 to teach mining skills to local workers. Cousiño installed steam engines to power ventilation systems and for extraction operations and built railway lines inside and outside of the mines to transport the mined coal to coastal piers for export. The innovations introduced by Cousiño resulted in the dramatic growth of coal mining near Lota, and this expansion promoted economic growth in the entire region. Lota is located on the coast almost exactly at the midpoint of Chile's approximately 4,600 km (2,880 mi) north to south dimension and some 480 km (300 mi) south of Santiago. Lota lies in Chile's 1,100 km (about 700 mi) long Central Valley which contains most of the nation's population centers and constitutes the heart of Chile's industrial, agricultural, and financial base. Administratively and geographically, the Lota area, including the Chivilingo site, is located in the VIII Región del Biobio, the capital city of which is Concepción. Lota was founded in 1662 as Santa Marìa de Guadalupe by the Spanish Governor Angel de Peredo. Later, its name was changed to Lota, the origin of which is "Louta," the native Araucanian word for small village. Initially an agricultural village, Lota turned to coal mining as the primary employer of its citizens during the second half of the 19th century. The village grew substantially and officially became a city on 5 January 1875. The original coal company operating in the Lota area from 1857 to 1869 was the Society Cousiño and Sons. It was succeeded by the Compañìa Explotadora de Lota y Coronel (the Development Company of Lota and Coronel) which operated the mines from 1870 to 1904. By 1880, 2,200 workers were employed in seven mines that extended to and under the sea. Eventually, some undersea coal mines in the area extended as far as 12 km (7.5 mi) from shore.