Chilean President Sebastian Pinera on Tuesday voiced his concern over the falling copper price, warning of its potential impact on the economy.

"We have seen in recent days a sudden drop in the price of copper and we all know that copper is something essential to the Chilean economy," local newspaper La Tercera cited Pinera as saying.

The mining sector represents 50 percent or more of "our exports and represents nearly a fourth of our public-sector revenue, thus it is a concern," said Pinera.

Chile "is neither shielded nor immune to what is happening in the world economy," he noted, adding, "we need to act responsibly" to successfully navigate the stormy seas of the global economy.

Finance Minister Felipe Larrain, however, sounded a more confident note, saying, "I want to offer a sign of tranquility: the budget is based on the long-term price of copper."

He estimated the long-term copper price would hover around 3.06 US dollars. "Any price lower than that means we will have to dip into some funds ... because we have the ability to do that," he said.

He added that copper price "translates into higher or lower deficits in the budget, but we are going to maintain our programs and benefits."

"In that sense, Chileans can remain calm, but if this process (price drop) continues, which I think would be rare, but not impossible, then it is a cause for concern," he said.

Chile has the world's largest copper reserves and is the world's largest producer, with 32.7 percent of the world's total output.