According to Fitch Ratings, Chile may increase the tax burden on copper producers by around 5 pp without materially harming the industry or affecting its competing.

The sector concerns that the present version of a royalty law will undermine competition & investments even though it is willing to pay more.

In order to preserve the overall tax load for each company at a maximum of 50 percent. Finance Minister Mario Marcel revised the law this week to ensure that the royalty rate would change

However, after several adjustments, the concept is now “significantly more reasonable,” according to Fernandez.

A 40 percent effective rate increase “wouldn’t generate a distortion,” she claimed. We can say, though, that it would create a more distorted scenario if it is actually nearer to what the industry is predicting