Chile plans to raise copper mining royalties

SANTIAGO, July 2 (Reuters): Chile's finance minister, Mario Marcel, on Friday introduced a tax reform bill that increases copper mining royalties on companies that produce more than 50,000 tonnes a year and raises taxes on high-income earners to fund the government's proposed social programs and reforms.

Chile is the world's top copper producer and is home to global copper giants like Codelco, BHP, Anglo American Glencore and Antofagasta.

"This means an increase in revenue from royalties, an increase in state participation in mining income," Marcel said. "But also ensuring the mining sector has enough income to encourage investment."

A press release from the treasury department says the plan has two components. One is an ad valorem tax between 1 per cent and 2 per cent for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1 per cent and 4 per cent for those that produce more than 200,000.