What are the main differences in the Chilean mining industry today compared to the last time you were minister in 2018?

Between 2018 and 2024, contexts have changed, more so than mining itself. This period was marked by the pandemic, increased social demands, and two constitutional processes. The mining industry has also evolved with the implementation of a new Royalty regulation. This legislation, which was debated for several years, is now fully in force and is already generating tangible benefits for communities. On April 12th, 2024, the government distributed CLP93 billion from the Royalty Regulation to 307 municipalities. How is the government addressing productivity in the sector?

The way that we have faced decreasing ore grades has been a great demonstration of Chilean engineers and professionals’ value and expertise. After 115 years of operations, 110 of those as an open pit mine, Chuquicamata was transformed into an underground mine. The goal is for it to run for another 100 years. This shift is a world-class engineering transformation, proving Chilean resilience and ability to face big challenges.

Another of these challenges is the need for integrating technology to enhance productivity and reduce costs. Technology is a key enabler to the development of the mining sector, especially when it comes to safety, and this sometimes implies higher costs. How is the Chilean government working to support the junior exploration sector?

At the end of 2023, Chile ranked fourth globally as a principal destination for exploration investment, and first in Latin America. We need the State to improve the fluidity of project evaluations, shortening timelines without compromising socio-environmental standards. There is an explicit commitment from the government to reduce permit processing times for mining investment projects in Chile by a third. We are materializing this commitment through two bills, both presented in January 2024. The first one amends the base environmental law; the second, seeks to change non-environmental sectoral permits. As a result of the Royalty regulation, we established a task force with various actors from the industry, and from this space, we are constructing new legal norms.

Additionally, we have been working on amending the mining law. As a result, the timeframe for mining exploration has been extended from two years to four years, with the possibility of an extension to four more years. This is only one of the ways we’re showing our commitment to promote continuous development for the mining industry. Can you detail recent advancements in the lithium sector?

Rather than focusing on production numbers or a global position, we aim to develop responsible mining that enables the State to capture revenue, incorporating technology and including Chilean talent. If this places us firsts in terms of global production, that’s excellent. However, our primary goal is to develop lithium ethically and sustainably.

The Chilean government presented the National Lithium Strategy in 2023, after six months of dialogues and inputs from Indigenous communities in the four regions where the salt flats are located. This year, we worked to identify which salt flats should be studied for protection, and what are the needed protection levels. While there already was a protected group of salt flats, we are expanding this list by 25%. As a result, we found two salt flats that we think should have majority State participation: Atacama and Maricunga. There are some other salt flats where we foresee public participation, but with flexibility in the business model. This is the case with the Altoandino and Pedernales salt flats in the Atacama region.

For 26 salt flats, representing 18% of our national total, we opened a Request for Information (RFI) process on April 15, 2024. Through this, we are looking to understand what is the true interest for international investing and assess its potential impacts, conducting relevant indigenous consultations before moving forward with Special Operation Contracts for Lithium (CEOLs). We decided on this initiative after the earlier experience of a failed tender in 2021, where potential impacts were not accurately assessed, leading indigenous communities to defy the process. Do you have a final message?

The commitment of the Chilean government is to develop the mining industry through public-private collaboration, maintaining a socio-environmental balance. With its experience, Chile is prepared to supply the critical minerals that global demand requires, thanks to its geological virtues and available human talent. As government, we are committed to improving permit times and procedures, hence expediting and strengthening our national mining industry.