en.Wedoany.com Reported - Chile's Chamber of Deputies Mining Committee recently began reviewing a bill submitted by the current government, which aims to amend the Mining Code and provisions related to mining protection in Laws No. 21,420 and No. 21,649.
Chile's Minister of Economy and Mining, Daniel Mas, stated when introducing the initiative that the core objective of the proposal is to modernize the mining patent application and payment system, simplifying processes to reduce the administrative burden on small and medium-sized miners in the country.
According to the bill's text, the current progressive patent fee levied on unexploited mining concessions (concesiones de explotación no explotadas) will be completely eliminated, a rule that previously caused holding costs to increase significantly over time. Instead, the bill broadens the conditions for obtaining mining patent reductions by adding new grounds for reduction and extending this benefit to lessees and prospectors. Additionally, the proposal transfers the authority to receive notifications of hydrocarbon discoveries to the Ministry of Energy (Ministerio de Energía) and establishes strict regulations to protect the landmarks used to define plots.
Regarding the reduction of mining patents, Minister Mas reported that the proposal suggests eliminating existing conditions for small miners to obtain reduced patents, such as the 500-hectare limit, family relationship requirements, and company type restrictions. At the same time, the obligation to apply for this benefit annually is removed, and the scope of grounds for reduction is expanded, including a new reason for exploration activities. The bill also stipulates that mining concessions under processing will be able to pay reduced patent fees during the approval period. Mas clearly stated that once the proposal is approved, the National Geology and Mining Service (Servicio Nacional de Geología y Minería, Sernageomin) will standardize application criteria across all regions.
During the discussion, lawmakers raised concerns about the local impact of mining activities and the role of municipalities. They inquired whether the National Geology and Mining Service has sufficient technical and institutional capacity to quickly verify the permits and declarations used to apply for patent reductions. Meanwhile, lawmakers requested clear projections from the authorities on how many actual jobs this initiative will create. On the other hand, some lawmakers expressed concerns about eliminating the progressive patent, arguing that this tool was designed to prevent speculation and the freezing of mining concessions. They urged clarification on how to ensure these mining rights are actually exploited and asked what mechanisms would be implemented to prevent large companies from accessing benefits designed for small and medium-sized mining operations. The committee agreed to hold a special meeting on Thursday, June 18, to hear opinions from various industry participants and to thoroughly analyze all implications of the legal proposal before voting.
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