Mining is one of the fundamental pillars of the Chilean economy, contributing significantly to the country's GDP and exports. To maintain competitiveness, increase mineral production, and ensure Chile's leadership in the global mining sector, future leaders must focus on several key aspects that will enable them to secure the resources needed to carry out their government programs.
Chile currently faces several problems that prevent it from developing and growing, including, among others:
- Excessive permissiveness in the hands of the political system remains unresolved;
- High tax burden;
- Greater security for investment and property rights;
- Lithium remains trapped until Articles 7, 8, and 9 of the Mining Code are repealed, while other countries take advantage of increased demand and high prices.
- The lack of a public policy to research and develop astromining;
- The lack of public policy and a strategy to protect the seabed from mineral exploitation;
- Excessive bureaucracy in state institutions;
- The lack of a model for developing the foundry industry, but with a sense of manufacturing our raw materials;
- The lack of a country-wide geological survey and exploration plan, region by region, to determine what resources each region of the country has and thus be able to plan its development;
- The lack of tax incentives for investment and geological mining exploration.
As the Chilean Chamber of Mining, we have not seen all of these issues that afflict our beloved mining industry addressed in the government programs of the various candidates, which is why we are calling on the candidates to incorporate them.
Competitiveness and mineral production are crucial, and to this end, the adoption of advanced technologies such as automation, digitization, and sustainable mining is essential to improve efficiency, reduce costs, and minimize environmental impact. Investment in research and development (R&D) in mining must be encouraged, and this is where programs will be needed, both at the academic level and for companies supplying the sector.
Otros aspectos, son los permisos y regulaciones, si bien se están haciendo intentos por disminuirlos o simplificarlos, aún falta. La simplificación de trámites y la claridad en las regulaciones ambientales y de permisos son esenciales para evitar demoras en proyectos mineros. Un equilibrio entre la protección ambiental y la viabilidad de los proyectos es necesario, será un pasaporte válido para potenciales inversionistas que quieran traer sus capitales al país.
Since the inception of the Chilean Mining Chamber, we have discussed and requested that ways be sought to increase geological mining exploration. Investment in basic and advanced geological exploration must be increased in order to discover new deposits and extend the useful life of existing mines. Collaboration between the public and private sectors can enhance these efforts. To this end, we believe it is essential that public policy consider incentives for mining exploration, following examples such as Peru, where tax breaks have been implemented to encourage exploration.
Incentives such as these could attract more investment in mining exploration, which could lead to the discovery of new mineral deposits; this would make Chile more attractive for mining investment compared to other countries with similar policies.
Another aspect that presidential candidates should consider is facilitating access to financing, technology, and training for small and medium-sized mining operations, which can increase production and improve safety in these operations.
I therefore believe that future governments must create an attractive environment for investment in mining, ensuring legal and political stability; promoting innovation; and ensuring that mining is carried out in a sustainable manner, respecting the environment and communities.
GUARANTEES FOR INVESTORS
From these lines, a piece of advice for anyone who has the mission of leading the country in the coming years. The guarantees that a country like Chile must give to potential investors in the mining sector are crucial to attracting and maintaining investment. Some of the key guarantees that investors typically seek include, as I already mentioned, legal stability, since investors seek certainty about the rules of the game. A stable and predictable legal framework is essential. This includes the assurance that contracts and agreements will be respected..
Added to this is clarity and efficiency in permits and regulations; simplifying procedures can reduce uncertainty and waiting times; guarantees of access to critical infrastructure such as roads, ports, energy, and water, which are essential for mining operations.
These and other guarantees are essential for attracting investment, reducing risks, and promoting development that contributes to the mining sector by ensuring that projects are viable in the long term and contribute to the country's economic stability.
As the Chilean Chamber of Mining, we hope to see more and better mining. To grow, we must invest, and to invest, we must provide security, and to have security, we must have good public policies.
Manuel Viera F.
President of the Chilean Chamber of Mining
