Chile's Ministry of Finance has proposed to revise the system and term terms of exploration royalties to provide the most vulnerable with a general security pension of 185000 pesos ($230,300) a month, according to the website BNAmericas.
The finance minister, Rodrigo Zelda (Rodrigo Cerda), proposed to the Senate Finance Committee to increase the annual occupation fee for exploration rights from 1/50UTM per hectare (UTM,Monthly Tax Unit, monthly taxable unit, 1UTM equivalent of 55000 pesos) to 3/50UTM per hectare.
However, the annual fees for mining rights under exploration will remain at the current level, and the fees for non-metallic and metal mining rights will be flattened to 1/10UTM (0.1UTM) per hectare.
With regard to mining rights, Zelda proposed to eliminate the difference between metals and non-metals and gradually increase the annual fee for idle mining rights.
The owner's annual fee per hectare is 4/10UTM (0.4UTM) in the first 5 years, and 8/10UTM from the 6th to 10th years. From the 11th year to the 15th year, it is 9/10UTM. From the 16th to the 20th year, it is 1.2UTM.
The annual fees to be paid from the 21st to the 25th year, from 26th to 30th year and from the 31st year are 3UTM and 12UTM, respectively.
For mining rights that are waiting for environmental approval, the annual fee is 3/10UTM per hectare.
According to the proposal, more than $80 million in revenue will go to the state treasury. The current levy level is $5000-$55 million, according to Zelda's demo.
On January 24th, the bill will be discussed in the entire Senate.
At present, Chile's exploration rights can be extended for two years, but if at least half of the area remains unexplored after two years, it can be extended for another two years. Zelda offered to extend the period to four years.
Although the occupation fee of mining right is stipulated, the exploration work is not mandatory.
In addition, industry figures and mining associations have proposed reforms to the provisions on mining rights in the Constitution, which will push for changes to the new Constitution next month.
(Sonami), Chile's national mining association, proposed that mining rights should be indefinite, while exploration rights can only be temporary.
(Cesco), a copper research center, suggested that the term of exploration rights be extended to three years, which could be extended for three years, but only once, but the agency also proposed to set minimum investment requirements and increase the cost of annual fees.
At the same time, the Mining Council, which represents large mining companies, recommended that mining royalty fees remain unchanged.
