Chile’s government will seek talks with large-scale mining companies to make more land available for smaller mineral explorers as it seeks to expand the copper industry, the world’s largest.
Two-thirds of land with potential for discoveries is in the hands of major mining companies and vast areas under concession are lying idle, Deputy Mining Minister Ignacio Moreno told a conference in Santiago today. Chile is falling behind Mexico and Peru in capturing mining investment, he said.
“Everyone knows there is a problem that we have to take on,” Moreno said. “For the exploration companies this topic creates a lot of enthusiasm. For the majors it causes concern.”
The government will seek talks with the industry and act with “prudence” to achieve a consensus before reaching a conclusion next year, Moreno said. One proposal under study is to create a tax for land concessions that are not being explored, he said.
Chile, which produces a third of the world’s copper, says major companies including state-owned Codelco, Anglo American Plc and BHP Billiton Ltd. plan to invest more than $100 billion in new copper and gold mines.
Even so, Chile ranked behind Australia, Canada, Mexico, Peru and the U.S. in capturing global expenditure on mining exploration last year, Moreno said.
The country has taken several steps to boost activity from smaller miners including the creation of a dual listing mechanism between the Santiago and Toronto stock exchanges and a government fund with $150 million in capital, he said.
Only $26.3 million has been spent of the Fenix fund on 12 projects and more than $60 million is available, said Luis Felipe Oliva, a manager of investment and finance at state investment agency Corfo.
For the original source of this article, click here: http://www.bloomberg.com/news/2014-10-07/chile-seeking-to-loosen-major-miners-grip-on-idle-land.html