Annual Mining License

For the purposes of determining the staggered increase in the amount of the annual mining license for exploitation mining concessions that are not being worked, the years in which the benefit of the reduced license was obtained shall not be counted.

In order to extend the benefit of the reduced mining license to the advanced geological exploration of the exploitation mining concessions, the concept of “mining site” (of the Mining Safety Regulation) shall be changed to “mining operation” (of the Mine Closure Law), which makes it possible to recognise as work, for the purposes of the reduction, mining activities from advanced geological exploration to the closure of the site.

Bill amendment proposed by the Administration  (July 5, 2023):  Incorporation of a presumption where by it shall be sufficient that the mining works are being executed in just one exploitation mining concession to presume other exploitation mining concessions included in the same measurement minute -submitted in the granting judicial proceeding- are in the same situation, being applicable the reduce license to them.

Bill amendment proposed by Representative Mr. Matheson (July 10, 2023): To eliminate reference to Mine Closure Law, understanding “mining operations” as such activities included in exploration phase that must be reported to Sernageomin pursuant to article 21 of the Mining Code, as well as prospection, construction, exploitation, and beneficiation activities of a mining site.

A third hypothesis of a reduced patent applicable to the small mining segment shall be introduced: those owners whose exploitation mining concessions have not started mining operations but who have any of the permits established in Title XV of the Mining Safety Regulations in process may apply, for one time only, for a mining license of 1/10 UTM per hectare.

* UTM (“Unidad Tributaria Mensual”) is a Chilean monthly unit of account for tax and penalty purposes, updated according to inflation.

The National Geology and Mining Service (Sernageomin) obligation to publish on January 15 of each year the list of properties subject to the payment of discounted patents shall be eliminated.

Bill amendment proposed by the Administration  (July 5, 2023):   The amount of reduced license for mining projects under environmental impact assessment or with an environmental approval resolution (RCA) shall reduce from 3/10 UTM to 1/10 UTM per hectare.

Bill amendment proposed by the Administration (July 5, 2023):  The amount applicable to first annual mining license of an exploitation mining concession shall be equivalent to 1/10 UTM per hectare

Bill amendment proposed by Representative Ms. Ahumada (July 10, 2023):

  • The value of the annual mining license of exploration concessions will be equivalent to 1/10 UTM per hectare.
  • The value of the annual mining license of exploitation concessions will be equivalent to 1/10 UTM per hectare. Nevertheless, such license will increase progressively whether the life of mine is equal to or greater than 60 years, and the exploration works have allowed to increase the life of mine, according to the following scale.
Exploration works have allowed to
increase the life of mine:
Value of the annual mining license
To 5 years2/10 UTM
To 6 -10 years3/10 UTM
To 11 – 19 years4/10 UTM
To 20 years or more5/10 UTM
  • The value of the annual mining license of exploitation concessions over non-metallic substances will be equivalent to 2/100 UTM per hectare.
  • The small-scale miners and artisanal miners may pay a reduced mining license of exploitation mining concessions equivalent to 1/10,000 UTM, over a maximum of 600 hectares in case of small-scale miners (currently the maximum is 100 hectares), and over a maximum of 150 hectares in case of artisanal miners (currently the maximum is 50 hectares).

Bill amendment proposed by Representative Mr. Tapia (July 10, 2023): “To eliminate the amendments to the annual mining licenses introduced by Law 21,420, maintaining the current annual mining licenses regime in force.