The Election that Could Shape Copper’s Future

Chileans headed to the polling stations on Sunday to elect their new president in a highly polarized election cycle. Two front runners, leftist Gabriel Boric and far-right conservative Jose Antonio Kast’s votes were very close in the first round, with Kast 2% ahead of Boric. The second round will be held on December 19.

The election in Chile is important for the future of copper as Chile is the world’s top copper producer. The country also has the largest known lithium reserves.

Gabriel Boric, who was ahead in the polls for a long time, has been leaning towards a more active role for the state in mining, as well as higher royalties.

On the other hand Boric’s rival Kast, an ultra-conservative, has been calling for more private investment in state-owned copper company Codelco. He also proposes changes in mining property law. Kast is often likened to Brazilian President Bolsonaro or former U.S. President Trump.

Both candidates are in favor of diversifying the country’s mining industry into other metals outside of copper and molybdenum.

One pressing issue for the copper industry is the new tax reform bill of Chile.

Under the proposed change, the royalty– amount taken by the government – could rise to 75% if copper prices exceed $4 per pound. Among the nation’s top copper mines, 14 of them have production costs above $2.50 per pound. With a high royalty, many could be forced to shut down when prices drop.

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


Get your daily Business Brief

Subscribe free to Business Brief

Business Brief delivers the latest insights straight to your inbox

You'll get daily industry insights on

Energy, Cleantech, Oil & Gas, Mining, Defense, Aviation, Construction, Transportation, Online Retail, Bigtech, 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

EU, Kazakhstan Sign $50 Billion Green Hydrogen Supply Deal

The European Union and Kazakhstan signed an investment deal for Hyrasia One, a subsidiary of the European cleantech Svevind Energy Group, to build one of the world’s largest industrial plants for green hydrogen in Kazakhstan’s Mangystau region. The investment agreement was signed by Svevind CEO Kropp and Kazakh First Deputy Prime Minister Sklyar during European Council President Michel’s visit to the Central Asian nation and in the presence of Kazakh President Tokayev.

UAE’s ADNOC Set for $150 Billion Energy Investment Boost

Abu Dhabi National Oil Co. (ADNOC), the United Arab Emirates’ main energy company, is set to boost investment to $150 billion over the next five years, with a view to increase oil production capacity and list some of its natural gas business. ADNOC also announced that it would expand its international gas, chemicals and renewable energy operations. The company’s move is considered as part of the UAE’s goals to hike hydrocarbon output while reaching carbon neutrality by 2050.  

OPEC and Russia Expected to Increase Oil Supply

Saudi Arabia and other major producers of oil are set to ease oil production cuts in August. The oil demand begins to rise again after the coronavirus lockdowns ease. OPEC and Russia had cut productions in April, which later extended to July.

Stay informed

error: This content is protected !!