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Rational43on May 18, 2021 12:14am
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RE:Chile going Hard Left, Peru potentially Socialist
RE:Chile going Hard Left, Peru potentially Socialisthttps://www.mining.com/web/politics-are-turning-against-copper-mining-in-top-producer-chile/
https://www.mining.com/web/peru-leftist-copies-chiles-proposal-for-tax-on-copper-boom/
Chilean copper mining is facing its biggest regulatory threat since the industry took off more than three decades ago.
Triggered by the worst social unrest in a generation, Chile just elected an assembly that places the writing of a new constitution largely in the hands of the left wing, with the ruling coalition falling well short of the numbers needed to exercise veto powers. After the weekend vote, the nation’s stocks, bonds and currency tumbled, while copper futures rose.
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.
CHILE JUST ELECTED AN ASSEMBLY THAT PLACES THE WRITING OF A NEW CONSTITUTION LARGELY IN THE HANDS OF THE LEFT WING
“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.