Chile's New Mining Royalty Law: What It Means For Foreign Investors

• Published date: 14 July 2023
• Subject Matter: Government, Public Sector, Energy and Natural Resources, Inward/ Foreign Investment, Mining
• Law Firm: Jones Day
• Author: Mr Antonio Canales, James Egerton-Vernon, Melissa Stear Gorsline, Cristina Pérez Soto, Luis Riesgo and Maria Pradilla Picas

Since the 1990s, Latin American states have sought to attract large-scale foreign investment by implementing specific policies and regulatory regimes aimed at attracting investors from abroad. This trend has, however, recently seen a reversal, and many Latin American countries, such as Mexico, Colombia, and Peru, have watered down their investor-friendly policies, specifically as concerns their natural resources. Chile, by and large, has not been at the forefront of this Latin American trend, but recent changes to its Mining Law imposing new taxes on large mining companies involved in copper production raise concerns.

This White Paper, which is available in English and in Spanish, provides an overview of the history of Chile's Mining Tax Reform and recently adopted Mining Royalty Law, examines how these legislative changes may potentially affect large mining operators, and discusses how...