Chilean Mining Commission approves mining royalty

The Mining and Energy Commission of the Chilean Senate approved the mining royalty project, which modifies the rate scale to apply the tax based on the operating margin of mining companies that produce copper in quantities greater than 50,000 metric tons, which fluctuate between 8% and 26 percent.

Key to making the project viable was the creation of three funds for a total of 450 million dollars, which had the unanimous support of the members of the Commission, highlighted the Undersecretary of Regional Development, Nicolás Cataldo.

It is about the Regional Fund for Productivity and Development, which goes to the Regional Government throughout the country and considers 225 million dollars; the Externality Compensation Fund for the Mining Communities, which takes care of the negative effects of the activity (tailings, contamination, etc.) and contemplates 55 million dollars; and, finally, the Support Fund for Territorial Equity, which goes to 80% of the lowest-income communes and has 170 million dollars, the authority specified.

In this way, Cataldo reported, “practically all of the communes in the country, more than 300 municipalities, receive some contribution from the mining royalty, excluding only the richest communes in the country.”

The project now goes to the Finance Commission of the Upper House. The rate will be determined according to the Mining Operational Margin of the respective year, in accordance with some rules.