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Vizcachitas is located in the Rocin Valley, Region V, 150km NE of Santiago

The rejection of the Dominga mining project in the Region IV has generated a distrust in the institutional framework, therefore, the reform of the Environmental Impact Assessment System (SEIA) will be another topic of discussion for the new government. The lack of clarification regarding Project approval terms could negatively affect investment decisions for companies, as investors would not know until the last moment whether their projects are approved or rejected, regardless of the amount invested or the obstacles they had to overcome. Foreign direct investment demands legal certainty.

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Now that Chile occupies the eight place in the Fraser Institute’s annual ranking of attractive destinations for mining investments, a challenge for the incoming government will be to reactivate foreign investment and ratify the country’s leadership in the mining industry.

According to the Ministry of Mining, led by Baldo Prokurica, with Pablo Terrazas as secretary,  measures that revitalize the industry are required. The team will work on a National Mining Policy for the period 2018-50 with the aim of attracting US$40B in investments.

The goal of the government is to increase the investment rate by three percentage points by the end of the presidential period—not only in mining. Currently, the mining sector generates approximately one tenth of the country’s GDP and half of its exports.

Following the recommendations of SONAMI and Alianza Valor Minero, the new authorities have also recognised the need to create a Project Management Office to speed up the approval process for mining permits. According to figures issued by Cochilco, the mining investment portfolio for the next 10 years (totaling US$64.8B) contains initiatives valued at US$ 11.7B, some of which have yet to be given environmental approval.

The rejection of the Dominga mining project in the Region IV has generated a distrust in the institutional framework, therefore, the reform of the Environmental Impact Assessment System (SEIA) will be another topic of discussion for the new government. The lack of clarification regarding Project approval terms could negatively affect investment decisions for companies, as investors would not know until the last moment whether their projects are approved or rejected, regardless of the amount invested or the obstacles they had to overcome. Foreign direct investment demands legal certainty.

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