Chile Aims for 6 Million Tonnes of Copper as Mining Policy Package Takes Shape

Chile has introduced a package of mining-policy measures aimed at accelerating investment and increasing copper production. The goal is to reach 6 million tonnes per year, up from around 5-5.5 million tonnes in recent years.

The policy push comes as Chile's mine supply has struggled to regain previous highs despite strong copper prices. To unlock additional supply, the government is advancing the Framework Law on Sectoral Authorisations, which will reduce processing times for project approvals by between 30% and 70%. This is expected to shorten the period between investment decisions, construction, and first output.

The government is also seeking to improve the broader investment environment through tax and regulatory measures. Plans include gradually reducing the corporate tax rate from 27% to 23% and restoring tax-stability arrangements of up to 25 years for strategic projects. This will provide greater fiscal certainty for capital-intensive copper developments, which can run into several billion dollars and project lives often extend for decades.

Exploration is another important part of the strategy. Chile has established a public-private technical working group focused on improving access to financing for junior miners, strengthening venture-capital participation, and reducing regulatory barriers to greenfield exploration. This matters because much of Chile's current copper production comes from mature deposits, while sustaining long-term output will increasingly require new discoveries.