Chile’s government is confident it can smooth out differences with the country’s largest mining companies before a key vote in congress this week on a new mining royalty bill.
(Bloomberg) — Chile’s government is confident it can smooth out differences with the country’s largest mining companies before a key vote in congress this week on a new mining royalty bill.
The administration of President Gabriel Boric is optimistic over an agreement between Tuesday and Wednesday, Mining Minister Marcela Hernando said at a seminar Tuesday in Santiago.
“We understand that several points of consensus have been reached,” Hernando said.
The comments come after the government presented amendments to the bill on Monday that would lower the maximum tax burden for copper producers to 48% of operating profit, from the 50% previously proposed. This would bring the average tax rate to 42.1% based on prices over the past 10 years, according to previous data presented by Finance Minister Mario Marcel.
Still, there are differences over calculations of the tax burden, with Juan Carlos Guajardo, who heads the consulting firm Plusmining, putting the average nearer 46%.
“The ideal for the mining industry in Chile would be to lower it a few more points,” Guajardo said in a message.
The Senate’s Finance committee will vote on the bill later Tuesday with a vote at the Senate floor scheduled for Wednesday. The bill will then head back to the lower house for a potential final vote.
–With assistance from Valentina Fuentes.
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