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1) Chile has approved an amended mining royalty bill that will require companies mining in the country to pay more in taxes and royalties to the government. The bill is set to have a maximum tax rate of around 47% for companies that produce over 80,000 tons of copper per year. When it comes to miners that produce more than 50,000 tons per year, the bill imposes a flat rate ad valorem tax of 1% on miners, as well as an additional 8% to 26% tax depending on the miner's operating margin. The mining association Sonami expressed relief that it finally put an end of uncertainty and that it is an improvement over the initially proposed bill. “With this legislation, we seek to avoid what happened many times with our country’s natural riches: they were exploited, they disappeared, which left very little for the country and its future development,” said Mario Marcel, Chile's Finance Minister. The new bill will be effective January 1st, 2024 and will inject $1.5 billion into the government with almist $450 million distributed to regional governments for social spending.
2) The European Union is working on advanced deal with Chile and Argentina for strategic minerals such as lithium and copper for electric vehicle batteries and key green technologies. According to the European Commission, the preliminary MoU's can be signed in the next coming months and other possible partnerships also are being explored in South America as well as other regions. The European Union is looking to reduce their dependence on hostile foreign powers, like China for its critical minerals when it comes to the key infrastructure in its green technologies. The partnerships involve the European Union (EU) and the countries where the EU provides funding for exploration and production, while the countries provide the area and resources to do so. Chile is the largest producer of copper and second largest producer of lithium. Argentina is looking to increase its market share in mineral production and this is a good way for the country to do so.