A rising demand to participate in the revenues from natural resources, tougher environmental protection rules and law changes are increasing risks for mining and energy companies across Latin America, even in countries once considered safe investment destinations, a new study shows.
According to the 2022 Latin America Mining Risk Index, published by consultancy Americas Market Intelligence (AMI), once investors’ darling Chile, is now the riskiest country in the region.
The nation is redrafting its market-orientated constitution, which dates back to the military dictatorship of Augusto Pinochet. It will hold a nationwide referendum vote on the new text in September, which could bring a full ban to mining in glaciers, many of which are adjacent to lithium deposits.
The new constitution may also include mandatory community prior consent on new concessions near indigenous land claims and the end to ownership of water within concession boundaries, replaced by a water permitting process.
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