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Mining News September 17, 2018 10:30:41 AM

Chile Proposes Fresh Mining Taxes for Copper and Lithium

Paul Ploumis
ScrapMonster Author
The proposal is being forwarded to the mines and energy committee of the country’s House of Representatives.

Chile Proposes Fresh Mining Taxes for Copper and Lithium

SEATTLE (Scrap Monster): Lawmakers from a number of smaller political parties in Chile have put forward a bill that proposes additional tax on copper and lithium miners in the country. The proposed bill sets 3% mining royalty to be paid to the government by all companies operating in the country. The tax, thus collected, would be utilized towards overall development of the regions surrounding the deposits.

The tax, designed to ensure that miners contribute a part of their profits to the region where they operate, will be applied on the nominal value of the extracted metals. All copper miners whose production exceeds 12,000 tonnes per tonne and those miners who extract more than 50,000 tonnes of lithium per year would be impacted by the tax. The miners are required to make the tax payment every year, throughout the life of the mine. In case of non-operational mines, tax will have to be paid from the start of extraction to its completion.

The proposal is being forwarded to the mines and energy committee of the country’s House of Representatives. However, the house passage of the bill is still in doubt as the the bill lacks support by the ruling party as well as bigger opposition parties.

The global mining firms likely to be impacted by additional tax include BHP Billiton Ltd, Glencore Plc, Anglo American Plc, Antofagasta Plc, SQM SA and Albemarle Corp

Following the devastating earthquake in 2010, the Chilean government had raised mining royalties from 4-5% to between 4% and 9% of mining sales. In early this year, this was raised to 5% to 14%.

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