Chilean mining chief warns royalties bill in current form 'akin to expropriation'

By Reuters10 days ago

Reuters. FILE PHOTO: The Codelco El Teniente copper mine, the world's largest underground copper mine is shown near Rancagua, Chile, August 13, 2020. Picture taken through a window. REUTERS/Fabian Cambero

By Fabian Cambero

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SANTIAGO (Reuters) - Chile's National Mining Society (Sonami) has warned that a royalty project being discussed in Congress proposes levels of taxation that are akin to expropriation and would paralyze investment in the Andean nation.

The plan, which proposes a progressive tax of at least 3% on copper and lithium sales, is driven by opposition-party legislators as a way to fund more expansive government social programmes as the country struggles to recover from the coronavirus pandemic.

The bill has been tweaked in Congress' mining and finance commissions and will be voted on in the chamber of deputies on Thursday. If approved, it will move to the Senate.

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