Politician: Royalty alternative ready if current bill not passed

The president of Chile's lower house, Pablo Lorenzini, has warned that if the proposed royalty does not pass the senate, he will propose his own bill, for which he already has the necessary votes. Lorenzini and 10 other representatives have come up with their own royalty alternative to propose, which differs from the current proposal in that the royalty would take effect immediately and would apply a 3% tax on extracted minerals, parliamentary web page Web de la Cámara reported. The current proposal would allow three years to apply a 3% royalty on net sales of metallic minerals. "Our bill is clear and concise - it is a 3% [tax] on minerals belonging to all Chileans here and now, at the very minute the bill is passed," Lorenzini said. The representatives' bill would immediately bring some US$250mn/y to state coffers, while the current bill is expected to bring in around US$100mn/y once it takes effect. The royalty issue cannot be postponed any longer because it is something that all Chileans want, he said. On Wednesday (August 4), the senate began discussions to decide upon the application of a royalty on mining development, which was rejected in July by the lower house when it did not receive the necessary quorum.