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The BHP says rising taxes threaten Chilean mining companies

Increasing taxes and royalties puts a threat on the mining industry in Chile, the world’s largest producer of copper, according to BHP’s chief of operations in the United States.

Last week, a Santiago legislative committee approved an amendment to the Mining Royalty Bill that would increase taxes on the sale of copper and lithium, metals that are expected to play a significant role in the transformation of electric cleaners.

Although the bill appears to have been finalized, experts believe that higher taxes and duties are coming to Chile and other rich countries.
Chile is planning to rewrite its legislation.

High inflation, copper sells for more than $ 10,000 per ton Last week for the first time in ten years, there are concerns that miners will be encouraged by governments that want to pay for programs after they have recovered.

Australian Prime Minister Kevin Rudd has recently called for a higher tax on the country’s three largest metal producers – BHP, Fortescue Metals Group and Rio Tinto. In Peru, a presidential candidate has promised to redistribute mining resources.

In Chile, rising taxes may cause foreign companies to be anxious about new projects or expanding existing mines to meet their needs. the amount of copper and lithium from electric car manufacturers and the electronics industry.

“You can really try to get the most out of the gold goose but you just have to know exactly what it means for a long time,” Ragnar Udd, President of BHP Minerals America, told the Financial Times. “And the changes that are taking place right now will be very damaging to the industry.”

Chile is the world’s largest copper-producing country, accounting for about 28% of the world’s steel ore, which is used in everything from domestic to electric wires. Copper is an important part of its economy, but many of its mines are aging with declining ore prices and high logging prices.

“Chile’s reserves are not from 20 to 30 years ago,” Udd said. “The fact is, the grades are very low. We have passed the last 15 years from 1% copper to 0.6 to 0.7 percent. . . then you have to work hard to find different ways to be more effective. ”

“In the last 15 years, the copper share from Chile has grown from 34% of the global market to 28%,” he added.

Udd, a Canadian engineer who joined BHP in 1997, began his career in November. In addition, BHP operations in Chile, which include Escondida, the world’s largest copper miner, are also responsible for Jansen, the great work of potash the company is looking to make it to Canada.

While American business is often overlooked by investors who focus too much on BHP’s profits, with its steel mines in Western Australia, Udd believes it will be a key factor in the company’s growth and quest for the “future”.

“I see that this is what will support the organization for the next 30 to 50 years,” he said.

BHP plans to approve the first phase of Jansen’s project within a year but after spending $ 4.5bn it should continue.

“What we love about potash is some of the variety we see bringing it to BHP,” Udd said. “It not only offers a wide range of international and customer opportunities. . . drivers needed for potash are slightly different from copper. ”The use of potash has long been associated with humanity rather than civilization.

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