矿业新周期系列——智利矿业投资指南-英-100页_3mb

Chile's Mining and Metals Investment Guide 2023: Summary

This guide provides a comprehensive overview of investment opportunities and regulatory requirements for the mining and metals sector in Chile. It aims to assist foreign investors in navigating the legal, tax, and operational framework of Chile's mining industry while addressing recent reforms and market trends.

Politics and Economy

Chile has a stable democracy with a constitutional republic system and a market-oriented economy. The country ranks high in Latin America for business environment and competitiveness. Recent years have seen economic challenges, including high inflation (reaching 12.8% in 2022), GDP slowdown, and regulatory uncertainty due to ongoing constitutional reforms. Despite these issues, Chile remains attractive for foreign investment, with an expected GDP per capita of US$30,000 in 2024, making it the first South American country to reach this milestone. Key economic sectors include copper and lithium mining, which have driven export revenues and government finances.

Mining Sector

Mining is a cornerstone of Chile's economy, contributing significantly to GDP, employment, and foreign investment. Chile is the world's largest copper producer (26% of global output in 2021–2022) and holds 36% of global lithium reserves. The sector faces challenges such as lower ore grades, inflation, and environmental pressures but is bolstered by demand for copper in electrification and lithium for batteries. Recent trends emphasize environmental, social governance (ESG), and decarbonization, alongside geopolitical risks and supply chain disruptions.

Legal and Tax Framework

The mining legal framework is based on the Constitution, Organic Constitutional Law on Mining Concessions, and the Mining Code. Key pillars include security of tenure, environmental regulations, and water rights. The government introduced a new Mining Royalty effective January 1, 2024, with ad-valorem and operating margin components. The tax system includes corporate income tax (27%), specific mining taxes, VAT, and transfer pricing rules. Incentives like研发税收抵免 are available for innovation, and foreign investors enjoy nondiscrimination rights and repatriation of profits under Law 20,848.

Business Structures

Foreign investors can establish corporations (SA), stock corporations (SpA), limited liability companies (SRL), or special vehicles like contractual mining partnerships (SCM). The process involves public deeds, registration with Commercial Registries, and compliance with labor and environmental laws. Labour regulations emphasize minimum wage, working hours, and social security contributions, with special provisions for remote work and foreign employees.

Labour Regulations

Chilean labour law requires indefinite contracts and mandates severance payments for certain terminations. Foreign employees must obtain work permits, and employers must adhere to anti-discrimination laws. Recent legislation includes adjustments to minimum wage, profit-sharing, and protocols for occupational health, as well as discussions on reducing working hours.

Accounting and Conclusion

Chile adopted International Financial Reporting Standards (IFRS) for mining entities, with specific guidance on exploration costs, stripping costs, asset impairment, and decommissioning liabilities. The guide concludes with contact details for EY Chile, offering global expertise in assurance, consulting, and transactions to support mining investments.

This guide serves as an essential resource for international companies seeking to navigate Chile's evolving mining landscape.