On May 10, 2023, the Senate approved the bill that establishes a mining royalty in Chile, with votes from senators of both the ruling parties and the opposition.

The approved bill contemplates the establishment of a mining royalty structured on the basis of 2 components:

• Ad valorem, consisting of the application of a fixed 1% rate on the annual copper sales of mining companies whose average annual sales for the last 6 years are greater than the equivalent of 50,000 metric tons of fine copper.
• Mining margin component, applicable over the adjusted taxable mining operating income, which is similar to the current specific mining tax (which would be repealed if the bill in question is approved).

With this approval, the mining royalty bill will return to the Chamber of Deputies, where it must be approved for its publication as law.

For more information on the mining royalty proposal approved by the Senate, click here.