On Tuesday, the local head of U.S. miner Freeport-McMoRan FCX.N, Mario Larenas, stated that the prolonged delay in implementing reforms in Chile aimed at speeding up mining permits poses a “serious” problem for the mining industry in the world’s leading copper-producing nation.
Chile, which is also the world’s second-largest producer of lithium, a crucial battery metal, is contending with regulatory obstacles that miners assert are impeding project development.
The government of President Gabriel Boric is striving to introduce reforms to simplify mining permits and also to modify environmental assessments. These reforms are presently being deliberated by lawmakers.
Larenas, speaking at a seminar organized by EY and Cesco in Santiago, emphasized that “The issue of permits is a serious one.” He characterized the legislation as “perfectible” and “on the right track,” yet bemoaned the hold-up in the legislative process. He noted that initially, when the reforms were proposed, the intention was to have them finalized by the end of the year, but that this would not come to pass.
Freeport FCX.N is a significant producer of gold and base metals, particularly copper and molybdenum, with operations in the United States, Peru, Chile, and Indonesia. The company has plans to invest $7.5 billion to expand its open-pit El Abra copper mine by 2025, subject to obtaining an environmental permit. The project’s minority partner is Chile’s state-run copper company Codelco.
Freeport’s Local Head in Chile Flags Extended Delay in Mining Permit Reforms as a Grave Concern