Miners Warn Chile Royalty Bills Could Hamper Investment

Mining majors BHP and Antofagasta said on Wednesday Chile’s proposed mining royalty bill would affect competitiveness and discourage miners from further investments while reevaluating the current ones. Chile is the world’s biggest copper producer and its No.2 lithium producer. The government has proposed a royalty with a portion based on sales and the other subject to profitability, which progresses as the price of copper increases.

BHP said the current bill would impact its competitiveness abroad and negatively impact its operations in other countries.

“It is our duty to warn that in a highly competitive global world, Chile cannot disproportionately increase its taxes without significantly affecting investment levels,” BHP’s vice president of corporate affairs for the Americas, Muga said in his speech to Chilean Congress.

Muga also said that if the bill goes through, the company would have to reconsider its announced investment portfolio of $10 billion as it was outlined without considering “such a heavy tax burden”.

Antofagasta Minerals said that the proposed changes would put the taxation over 48%, on par with high tax countries such as Congo, Mongolia and Zambia.

Antofagasta had previously announced an investment portfolio close to $5 billion for the coming years.

Both company representatives acknowledged that there’s room for more contribution from the mining sector, but pushed for collaborative agreements that maintain business sustainability.

Other global mining giants like state-owned Codelco, Glencore, Anglo American and Freeport-McMoRan also operate in Chile.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now


Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today


Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

U.K. Trade Secretary Trevelyan Visits the U.S. Hoping to Resolve Tariffs

U.K. Trade Secretary Anne-Marie Trevelyan travels to the United States to discuss bilateral trade issues with U.S. Commerce Secretary Gina Raimondo and Trade Representative Katherine Tai. Removing Trump-era tariffs on British steel and aluminum will be the main issue Trevelyan intends to resolve.

Ford Reaches Every Corner of the World to Secure Raw Materials

Ford’s efforts to secure raw materials resulted in a list of mining companies that cover every region in the world, from Argentinian lithium to Indonesian nickel. Ford’s agreements, including the ones with mining giants Rio Tinto and BHP, are the latest signs of how big automakers are rushing to secure more raw materials to prevent future shortages. One of Ford’s most consequential deals was the one that put iron at the forefront of the company’s electrification plans.

U.S. IRA to Drive Lithium Prices Soaring Further

Lithium prices, which have already been on a sharp rise, are expected to increase further partly thanks to U.S. Inflation Reduction Act (IRA), as a key part of the legislation focuses on boosting production and processing of battery metals, including lithium, within the United States or in countries that have a free trade agreement in place with Washington. 

Stay informed

error: This content is protected !!