UPDATE 1-Chile needs to promote mining exploration-executive

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SANTIAGO, April 8 (Reuters) - Chile could lose ground as the world's top copper miner if it does not improve incentives to exploration, Nicolas Fuster, the Xstrata Copper Chile (XTA.L: Quote, Profile, Research) exploration manager, said on Tuesday.

Fuster told journalists ahead of the CRU-Cesco World Copper Conference that Chile needs to boost investment in exploration, like countries such as Canada, if it does not want to loose its current pole position.

Chile is the world's largest copper producer but also has mines producing other base metals as well as precious metals.

Earlier on Tuesday, Chilean Mine Minister Santiago Gonzalez said the government has studied measures to give the sector a boost, including introducing tax breaks for investors and companies.

"If there are not the changes the minister talked about, we will fall behind as a country and will have to depend solely on companies' individual strategies," said Fuster.

According to the Metals Economic Group (MGE), total investment in exploration projects in Chile in 2007 was $360 million, a distant seventh place in the industry. Chile was the top destination for exploration capital in 1997.

"There are some companies that left, that think the country is not the best place for exploration, and they go away to places with a relatively higher political risk, like Africa and Asia," added Foster. (Reporting by Manuel Farias, writing by Marcelo Teixeira; Editing by Marguerita Choy)