Chile Lower House Passes Bill for Establishing Mining Royalties on Copper, Lithium

The Chilean Chamber of Deputies May 17 passed a bill establishing mining royalties for the exploitation of copper and lithium. The bill includes measures to: 1) provide a flat rate tax of 1 percent of the sales for large-scale copper mining with production exceeding 50,000 metric tons; 2) a component based on the operating margin of mining companies, with tax rates of between 8 percent and 26 percent; 3) a 46.5 percent maximum potential tax for companies that produce more than 80,000 metric tons of fine copper on the adjusted mining operational taxable income (RIOMA); and 4) a 45.5 percent ...