Chile: Recent legal and political developments in Chile and their implications for mining companies
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Presented in association with Bofill Mir & Alvarez Jana Abogados
Over the past three decades, Chile has built and maintained a reputation as a rich, stable and market-oriented country. In a recent webinar hosted by Shawn Doyle, Mr. Doyle, along with speakers, Pablo Mir, Guillermo Fonseca and Jorge Velasquez describe Chile’s changing political landscape, the process of drafting the country’s new Constitution and some laws in progress. instance, describing the effects these may have on the mining industry. They address both discrete and general issues, including:
- What process is engaged in the drafting of the Constitution, and what proportion of the country must approve the new text?
- What legislative proposals will likely be put forward if a more left-aligned legislature emerges from the next elections?
- What is the royalty proposal that was introduced by the lower house? Is the new royalty a tax or an extraction royalty?
- What will be the impact of the new Constitution on taxation? What profit distribution conditions can be implemented and is fiscal stabilization available for mining companies?
- How will the tax system deal with complaints that isolated areas of Chile do not benefit from centralized taxation? If a new approach is taken to dealing with these complaints, will mining companies play a more limited role in supplementing or replacing government social programs in the isolated areas where they operate?
- What legal approaches to water regulation and glacier protection are being considered? What will be their impact on new tailings ponds, the desalination industry and other technical requirements relevant to the mining industry?
- Should the changing political landscape be included in the “risk factors” of a prospectus?
For answers to these questions and more, access the recording of the webinar “Recent legal and political developments in Chile”.
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