Written by Ian Cardenas, Lawyer
The Ministry of Mining of Chile, in collaboration with the National Service of Geology and Mining (Sernageomin), has announced the launch of a new benefit under the recently published Regulation of the Mining Code.
This initiative allows individuals and companies to apply for a reduced mining concession fee, aimed at promoting mining activities in areas that are registered and valid with Sernageomin and legally constituted in the Registry of Mines.
The new regulation provides significant flexibility for small-scale mining operations, a critical sector for the regional economies of northern Chile. The Ministry and Sernageomin called for applications for this benefit, which aims to stimulate greater dynamism in Chile’s mining industry by easing compliance requirements for small-scale miners.
According to the Minister of Mining, Aurora Williams:
This regulation marks an important change in the Mining Code as it seeks to invigorate mining claims. With this new legislation, those who do not utilize their mining rights, which are constitutionally protected, will be required to pay a higher concession fee, thereby encouraging market activity. Mining begins with exploration, and without better conditions to open up the market for exploration, we will not be able to increase mining production. This is an important step for the development of our country’s mining industry.”
Online Application Platform
Patricio Aguilera, the national director of Sernageomin, highlighted that an online application platform has been enabled for mining concessionaires. They will need to submit the required documentation, in accordance with the Mining Code and its Regulation, to qualify for a reduced mining concession fee of 1/10 of the Monthly Tax Unit (UTM) per hectare. To access the platform and apply, applicants can visit the Sernageomin website www.sernageomin.cl and enter their mining concession details.
Widespread Congressional Support
This project received broad support in Congress due to its promotion of effective work in mining concessions and its efforts to boost exploration by making more mining properties available. The regulation also aims to simplify and modernise procedures while increasing geological information.
According to Sernageomin’s estimates, 75% of the territory in mining zones is currently under some type of mining concession, but only 10% of that land is being actively worked. With this new regulation, the government hopes to open new opportunities for small-scale mining operations.
Aligned with Broader Efficiency Initiatives
This initiative is in line with other governmental efforts, such as the establishment of the Mining Window and the Mining Declaration, both of which are designed to reduce the time needed to process mining permits. These steps will help Chile move towards a more efficient, safe, and responsible mining industry. The reduced mining concession benefit is seen as a critical tool for enhancing the industry while continuing to support local economies.
Conclusion
The reduced mining concession fee introduced by the Ministry of Mining and Sernageomin marks a pivotal step toward unlocking Chile’s full mining potential. By lowering the financial barriers for small-scale miners, this initiative is not only designed to reinvigorate idle mining claims but also to stimulate economic growth in key mining regions. The government’s efforts to streamline procedures, supported by initiatives such as the Mining Window and the online application platform, demonstrate a commitment to fostering a more efficient and responsible mining sector.
For those looking to benefit from this new regulation, now is the time to act. Small-scale miners, concessionaires, and companies can submit their applications online via the Sernageomin’s website, taking advantage of the reduced fee to maintain and explore new mining opportunities. As Chile continues to adapt its mining framework, these changes promise to contribute significantly to the industry’s long-term sustainability and the country’s economic future.
To apply or learn more, get in touch with our team to discuss how to take advantage of the scheme.
