“We trust that the spirit of programmatic convergence, moderation and openness to dialogue shown during the last week of the campaign will prevail,” Sonami said in a statement.
Boric, a 35-year-old former law student, vowed during his campaign to bury Chile’s “neo liberal” economic model. Although he later softened his message, he has kept the idea of giving the State a more active role in the sector, as well as higher royalties.
He is also a fierce supporter of a state lithium firm and green investments. Since Chile is the world’s top copper producer and also has the largest known reserves of lithium, Boric’s vision could prove positive for the country if he is able to deliver on his campaign promises.
Both copper and lithium are among the most coveted commodities as they are both used in electric vehicles (EVs) and infrastructure to support other green technologies.
During his victory speech, Boric reiterated he would oppose mining initiatives that “destroy” the environment, particularly the controversial $2.5 billion Dominga copper and iron ore project that was approved this year.
“Destroying the world is destroying ourselves. We do not want more ‘sacrifice zones’, we do not want projects that destroy our country, that destroy communities and we exemplify this in a case that has been symbolic: No to Dominga,” he said.
While the political shift isn’t likely to have immediate supply impacts, a slowdown in permitting or higher costs imposed by the government could slow investment in capacity to produce copper, a metal seen as key to the energy transition. That could send prices back up to record levels seen earlier this year.
“Copper and lithium miners will naturally be in the crosshairs, particularly with both commodities at or close to record prices, while we would expect a weakening of the Chilean peso,” BMO Capital Markets analyst Colin Hamilton said in a note.
Boric’s victory spells good news for copper producers outside of Chile in the medium term, according to Hamilton. Any additional delays to potential projects as they wait for approval while the new government pushes new legislation through Congress could add to copper supply issues.