More light shed on Chile's mining chamber proposals for presidential runners

Chile’s mining chamber recently outlined 16 proposals for the government programs of the two remaining candidates for the presidency, right-winger José Antonio Kast and left-winger Gabriel Boric, ahead of the December 19 runoff vote.

BNamericas spoke to chamber president Manuel Viera to find out more details of the proposals and how the preparations for the meetings with the candidates are advancing.

BNamericas: Has the mining chamber scheduled meetings with the presidential candidates to present its proposals yet?

Viera: We’re coordinating meetings with them. José Antonio Kast's mining coordinator told us that we could talk with the candidate and his economic and mining teams next week.

On the other side, they [Gabriel Boric's team] haven't responded yet.

BNamericas: One of the chamber’s proposals for the candidates is to increase the added-value of raw materials. How can that be done?

Viera: We’re talking about copper, lithium, rare earths, etc., because all raw materials include other elements. For example, [copper] concentrates contain rare earths, uranium, etc. So, whoever buys our raw materials perhaps has the technology to recover these elements.

Chile has been selling raw materials for more than 100 years and this creates jobs in other countries. So, what we’re pursuing is the creation of industries and plants to generate new jobs, substitute imports and bring greater foreign currency into the country.

BNamericas: How could value-added copper be offered to buyers?

Viera: By taking advantage of the seven smelters that the country has, copper can be smelted to make parts. So, from there, we want the government to call a tender to build plants in northern and central Chile to turn us into an industrial hub.

Political will is required for all of this.

BNamericas: Another proposal is to promote the use of satellites for mining exploration. Does that go beyond the agreement signed by the mining ministry and Sernageomin [the mining and geology service] with the Chilean air force?

Viera: It goes beyond that, it something more technical. What we want is for each [Chilean] region to be aware of what mineral resources it has, so that the regional government is clear about what it has to do. They can prioritize initiatives, as well as attract investors by offering certain tax benefits.

Today, we have new technologies that involve satellites. For example, 50km² of satellite exploration can be done in a week and using traditional methods it can take a year.

BNamericas: Have you taken any steps regarding that?

Viera: Yes, we’ve already contacted a Ukrainian firm that has 10 satellites, as well as drones and other equipment, to find targets with mineralized bodies to go directly to those points, making the discovery process more effective.

BNamericas: Have you reached an agreement on that yet?

Viera: We have a preliminary agreement. We asked this firm to do a test close to Putaendo [Valparaíso region] and they’re going to assess 200km2 there.

They want to involve the authorities immediately and that’s no longer our decision. We have to contact the undersecretariat of mining to gain their approval.

BNamericas: Other proposals include the development of a public policy that encourages research on mining in space, as well as protection of the mineral wealth of the ocean. Can you give us any details?

Viera: If we consider mining in space, we see that Chile has a number of advantages over other countries. The topography of the Atacama desert is close to that of the moon, Mars and asteroids, but Chile also has six of the largest observatories in the world, so we can advance with research on how to exploit asteroids.

By 2050 there will be less minerals [worldwide], so it would be necessary to see where to find them. We have the moon, Mars and the asteroids. In the asteroid belt, between Mars and Jupiter there are almost a million asteroids that are natural concentrations of minerals.

Each asteroid is a floating mine and countries such as Japan are already investing in research on this, but Chile doesn’t have a public policy to address that. 

BNamericas: What about sea mining?

Viera: Chile’s maritime zone is five times bigger than our territory, but if we don't take care of it, other nations will mine that mineral wealth. Again, a maritime policy is required.

We’ve sent a note to the foreign affairs ministry to address the defense of our maritime zone. 

BNamericas: Another proposal is the use of renewable energy and green hydrogen in exchange for tax benefits. What kind of tax benefits could that involve?

Viera: These tax benefits would mean reconversion of that money into more R&D.

BNamericas: The chamber is also talking about making the tax burden and royalties equitable as part of the royalty debate?

Viera: Yes. When we were in the senate [in a hearing before the mining and energy committee earlier this year], we said that there has to be a point of balance. On one hand we have the quest for greater tax revenues and on the other we have investors who want to protect their profitability. There needs to be a point of balance to make this fair and equitable, because with the bill being discussed, no investors will want to invest in Chile.

Photo credit: Chilean mining chamber