Chile's constituent assembly, charged with drafting the country's new constitution, on Saturday approved an early proposal that opens the door to nationalizing some of the world's largest copper and lithium mines.
Miljönämndens motion, som under helgen sammanträdde för första gången sedan den inrättades som tidsfrist för att lägga ned förslaget, fick 13 röster för, tre emot och tre nedlagda.
The proposal, which focuses on large-scale mining of copper, lithium and gold, has yet to be approved by two-thirds of the general assembly to become part of Chile's new charter, which will be put to a national referendum later this year.
Med tanke på att den chilenska staten redan äger grundläggande gruvrättigheter beskrev analytiker flytten som en direkt attack mot privata intressen och gav regeringen ett år på sig att förstatliga företaget.
The companies involved in metallic and non-metallic minerals and hydrocarbons may not be compensated for the loss of mining rights. The proposal says the auditor general would determine this based on the company's book value, with a maximum payment period of 30 years.
I texten föreskrivs också att verksamheter och projekt som påbörjats före 1993 ska lämnas in för miljöprövning inom tre år. Koncessioner i uteslutna områden, som nära glaciärer och på inhemsk mark, kommer att dras tillbaka.
Miljörådet - tillsammans med unga aktivister - röstade om ett första utkast till motionen i början av februari, vilket ledde till en omedelbar motreaktion, även från de chilenska myndigheterna själva.
Diego Hernandez, head of the National Mining Association, which represents companies in the industry, describes the idea as "barbaric" and "clearly wrong legally".
Veteranen från mitten-vänstern sa att åtgärden var inriktad på företag och resurser, vilket skulle få stora ekonomiska och juridiska konsekvenser för Chile.
"Given the globalization of the world, I would expect the affected companies to resort to treaties to defend their legitimate interests," Mr. Hernandez said.
Sergio Bitar, a socialist politician who was mining minister in 1973 under the deposed leftist government of Salvador Allende, called the initiative a "mad return to the past."
Chile antog en lag 1967 som kräver att företag ska ägas till minst 51 procent av medborgare. Fyra år senare köpte staten resterande 49 procent och bolaget förstatligades helt.
"I remember all the problems we had trying to sell copper outside of the commercial circle, and I remember when Congress voted not to pay the company any compensation for loss of assets and profits, and that's what I'm listening to right now," Bitar said in an interview with MercoPress.
"There is one thing that is dream, wishful thinking," the veteran politician said. "The other is reality, which shows how dependent Chile is on global powers (...). For example, China now buys a third of Chile's copper, so what is our strategy for nationalised mining companies? Reduced exports?" "He pointed out.
Högre royalties
Chile, the world's biggest copper producer and host to two of its biggest lithium miners, is in the process of amending its constitution to replace the market-centred one, which dates back to the military dictatorship of General Augusto Pinochet.
The country produced 5.6 million tons of copper in 2021, about 25 percent of the world's total, and has nearly 70 billion in potential mining projects this decade, most of which will never materialize if the country nationalizes its resources.
Politicians in the world's largest copper producer are also fine-tuning a new mining royalty bill that would raise tariffs on companies based on gross sales and profitability.
In its latest report, FTI said: "We estimate that if the new tax is approved, Chilean copper miners could see their tax rate rise to 80 per cent and profit margins fall by more than 50 per cent at current copper prices."
Analysts believe that while outright nationalisation, as proposed, is unlikely, the chances of a radical new royalty regime are far greater. It could "push the Chilean tax system into pseudo expropriation territory, especially as prices are likely to remain above 4 a pound, which is a 75 per cent tax rate."
De drog slutsatsen att Chile kan bli det land med den högsta skattebördan på kopparbrytning, vilket tvingar företag att om-undersöka lönsamheten för sina nuvarande och framtida investeringar.
