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Chile Puts Mining Royalties on the Agenda

In Chile the after effects of the miners rescue can be seen in a bill proposed by President Sebastian Pinera. The bill seeks to raise mining royalties from a range of 4 to 5% as currently paid to a range of 4 to 9% depending upon operating margins. This will eventually be raised to a range of 5 to 14% by the year 2018.

Miguel Angel Duran, who is also chief executive of Anglo American Chile, said that if this bill was passed it would become one of the highest effective tax rates in the mining world. In this case many companies would review their plans to develop mines with low ore grades in Chile. They would divert the funds to invest in Peru.

Chile would lose roughly $8 billion in fresh investments if the hefty tax on miners was passed. The legislation had been rejected before in the Senate but a deal with opposition law makers saw it sail through to the lower house. Now it needs to pass in the lower house before it is approved.

The change in mining royalties will bring in additional funds for the government to use over the next three years for the reconstruction activities after the massive earthquake in February.

Joel Scanlon

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Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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