Punta Arenas, city in southern Chile, capital of Magallanes y La Antárctica Chilena Region. Situated on the Strait of Magellan, Punta Arenas is one of the southernmost cities in the world. An important trading center for the wool, hides, mutton, and timber produced in southern Chile, the city has sawmills, tanneries, and facilities for processing frozen meat and canned fish. It is also the supply center for the oil industry on the nearby archipelago of Tierra del Fuego. Punta Arenas was founded in 1849 for the purpose of reinforcing Chilean claims of sovereignty over the Strait of Magellan. The city was a refueling station for shipping before the opening of the Panama Canal. In 1927 it was renamed Magallanes, but the original name was restored in 1938. Population (1998) 125,631.Microsoft® Encarta® Online Encyclopedia 2001
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