Chile's constitutional convention keeps mining sector largely intact

With the plenary sessions of Chile’s constitutional convention having wrapped up on May 14, the scenario regarding mining becomes clearer.

The draft establishes state ownership of minerals, allows the creation of non-mining zones in sensitive environments such as glaciers, and aims to facilitate certainty and sustainability for small miners, including facilitating “access to the use of tools, technologies and resources for traditional and sustainable [mining].”

An article that worried the sector and would have changed the concessions system to one based on temporary administrative authorization was rejected and excluded. Hence, concessions will continue to be regulated in line with the current mining code.

The nationalization of copper mining was not completely rejected, but several articles that aimed at a stronger role for the State did not make it into the draft.

Overall, the mining regime will remain intact. The State must establish sector policy and regulations considering environmental and social protection, and innovation, among others.

As the country’s main industry, mining was a key issue during the process to draft a new constitution. The text goes now to several committees for revision and to facilitate a possible transition to the new constitution.

The final text will be published on July 4, with a plebiscite scheduled for September 4.