Chile's Copper Growth Hinges on Faster Permitting, More Incentives

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Chile's Minister of Economy and Mining warns that reaching 6 million tonnes of copper annually will require lower taxes, shorter permitting times, and cross-border cooperation.

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Chile's Copper Situation

Chile's Minister of Economy and Mining, Daniel Mas, outlined at the CLAPES UC conference the nation's challenges and the path to reach 6 million tonnes of copper per year. Mas highlighted several policies to support this goal including reducing permitting times, lowering taxes, promoting exploration, and developing synergies with Argentina.

Industrial Info Resources data show 548 Metals & Minerals Industry projects across Chile representing US$104.22 billion in investments. Of those, 276 projects pertain to copper mining, representing investments of US$69 billion.

Chile remains the world's largest copper producer, supplying roughly 23% of global mine production and holding about 18% of the world's copper reserves. However, its production has declined from 5.8 million tonnes in 2018 to between 5 and 5.5 million tonnes in the last five years.

According to Mas, this is the result of aging deposits, declining ore grades, lower exploration investments, and lengthy permitting processes.

Chile's average copper ore grades declined from 0.927% in 2007 to 0.664% in 2024, requiring the country to process 46% more ore than in 2007 to obtain the same production. This is partly the result of aging deposits, as several of the country's largest mines have been operating for several decades.

At the same time, Mas highlighted the drop in exploration investment, with US$874 million invested in 2025 compared to US$1.03 billion in 2012.

He partly attributed Chile's failure to recover higher production volumes to projects being slowed by the lengthy permitting process. According to the minister, "We have generated a very dangerous network of long-processing permits with very high uncertainty for investors and producers. To start a project, an average of 147 permits are needed with more than 10 years in effective times for the complete route."

The Road to 6 Million Tonnes of Copper Ore

For Mas, the path to reaching an output of 6 million tonnes of copper begins with reducing red tape surrounding projects and lowering the tax burden on companies. In this context, the government of President Jose Antonio Kast sent its Reconstruction and Economic and Social Development Bill to Congress, which include the progressive reduction of corporate tax from 27% to 23% by 2029.

The bill also includes tax stability for 10 to 20 years depending on the size of the investments. Congress approved the bill, which is currently under review by the Constitutional Court before promulgation.

At the same time, the government expects the Marco de Autorizaciones Sectorales law passed in 2025 to reduce project-permitting times between 30% and 70%. The government also advanced amendments to the mining safety regulation that would simplify 55 existing sectoral authorizations into 13 permits and 18 alternative enabling techniques.

Mas also highlighted that ongoing changes to mine closure and tailings regulations are aimed to simplify procedures and attract more investments.

Chile and Argentina Open New Opportunities

He also highlighted the importance of strengthening cooperation and coordination with Argentina to develop deposits along the border, such as the Project Vicuña, El Pachon or Los Azules. Some of Argentina's largest undeveloped copper projects are located in San Juan Province, a few kilometers from Chile.

By coordinating permitting processes, border access, and cross-border infrastructure, the two countries could facilitate project development and lower production costs. Based on the minister's presentation, this cooperation could unlock US$20.7 billion in investments and add 540,000 tonnes of annual copper production through projects between the nations.

"If we are going to unleash our full potential, we cannot overlook this opportunity. That is why, even before taking office, we began working to reactivate this important instrument of international collaboration," said Mas.

Key Takeaways

• Chile needs to process 46% more ore than in 2007 to obtain the same production, due to lower ore grades.
• Mining projects need to secure an average of 147 permits, while the complete authorization process can take more than 10 years.
• Cross-border operations could unlock US$20.7 billion in mining investments and lead to production of 540,000 tonnes of copper annually.

About Industrial Info Resources
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