Chile’s senate has postponed for almost three weeks a vote on an opposition-sponsored bill that could hike taxes on miners by up to 75% depending on the price of copper, the country’s main export.
The bill, first introduced in 2018, calls for a 3% royalty on sales of over 12,000 tonnes of copper productions a year and 50,000t/y of lithium.
Half the funds obtained from the royalty would go into a convergence fund to finance regional and communal development projects. The other half would directly finance projects to mitigate, compensate or repair environmental impacts from mining activity in communities near mining projects.
The legislation, which faces multiple procedural hurdles, could risk some 1 million tonnes of annual copper output, representing around 4% of global production, Goldman Sachs said in May.
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