The makeup of the constitutional assembly leaves miners like BHP Group and Anglo American Plc vulnerable to tougher rules surrounding water, glaciers, mineral and community rights. The government’s crushing defeat may also add momentum to a bill that would create one of the heaviest tax burdens in global copper mining.
“Looking at how the distribution of the assembly came out, it’s clear there will be a search for mechanisms to redistribute more mining profits to society, and there will be more environmental requirements regarding an industry that people sometimes think — often in a simplistic way — is very profitable and polluting,” said Alejandra Fernandez, metals and mining director at Fitch Ratings Inc.