📋 Tender Overview
The instance requested the respective ministry to provide new information in the session tomorrow, Wednesday the 19th, regarding the effects that the bill will have on the sector that produces and sells on a small scale. Studying amendments that allow specific support for small and artisanal mining producers has been the demand that the members of the Mining and Energy Commission have made to the Executive, within the framework of the processing of the project that simplifies the mining patent system applicable to exploration and exploitation concessions. The proposal in the second stage was known by Senator Yasna Provoste (president) and senators Daniel Nunez, Juan Luis Castro, Renzo Trisotti and Miguel Angel Calisto, on August 5, when they received the Minister of Mining, Daniel Mas. Meanwhile, in the session on August 12, the body delved into its contents together with the Undersecretary of Mining, Alvaro Gonzalez and the executive vice president of the National Mining Company (Enami), Juan Carlos Saez. For their part, the doctor of Law from the University of Los Andes and lawyer in mining law, Maria Karina Guggiana, and the technical advisor of the Library of Congress, Nicolas Garcia, spoke at the session on August 17, while on Wednesday the 19th the academic and manager of GEM Mining Consulting, Ignacio Guzman, are summoned; the former Minister of Mining and Energy, Juan Carlos Jobet; the former Minister of Finance, Ignacio Briones; the director of the Center for Copper and Mining Studies, CESCO, Ivan Valenzuela; the academic of the Department of Mining Engineering of the PUC, Jose Joaquin Jara; and the professor of the Department of Mining Engineering of the University of Chile, Emilio Castillo. The message eliminates the progressive collection and bureaucratic requirements of kinship or corporate types, setting clear rates of 0.1 UTM (producers who prove work) and 0.4 UTM (producers who do not prove work) per hectare. Law 21,420 of 2022 currently governs, which reduces or eliminates a set of tax exemptions to permanently finance the Universal Guaranteed Pension (PGU). Accordingly, today the exploration concession establishes a fixed value of 3/50 of UTM per hectare (equivalent to 0.06 UTM) for each year of validity of the concession; while the exploitation concession has several options. If the membership certifies work, it pays 1/10 of UTM per hectare (equivalent to 0.1 UTM). To maintain this reduced rate, the concessionaire must annually prove to Sernageomin the start of work or works. If work is not proven, a progressive charge is applied that ranges from 4/10 of UTM per hectare (0.4 UTM) to 4.8 UTM. Small miners who strictly comply with the special protection requirements of up to 500 hectares are excepted from this scale. In the sessions, the senators have shown that the initiative does not sufficiently support small miners because it maintains a disproportionate financial burden compared to their productive reality, and in particular, it delivers benefits equally to mining without taking into account its size and consequent profits. In fact, in the last session it was agreed that the Executive would provide a series of background information on Wednesday the 19th regarding the net fiscal impact of the changes, how many concessions would remain in each section, how many small miners are in default due to the increase in the patent, how many have seen their belongings auctioned, who ends up being awarded them, and why it is said that today the property is concentrated and there are more auctions. A comparative legislation report on the payment of mining patents in Peru, Ecuador, Australia and Canada was also requested from the Library of National Congress (BCN). According to data provided by Sonami, 79% of the small and medium mining concessions are in arrears, small mining is the one that abandons the largest concessions, the delinquent titles reach 178 hectares against the 119 that are up to date, the rate of rejection of reduction of the concessions has been growing today, reaching 49%, and 24 thousand hectares would have been lost as a result of the current law. PROJECT The message introduces modifications to the Mining Code (Law 18,248) and laws 21,420 and 21,649. In particular: Replaces the Ministry of Mining, with the Ministry of Energy, as the administrative entity that will be informed about the presence of hydrocarbons within the mining concession lands. The idea is to order the separation of concessionable substances. For exploitation concessions, an annual fee of 0.1 UTM per hectare is set, as long as certain requirements that prove work are met; and 0.4 fixed UTM for concessions that do not accredit work. It incorporates a cause of reduction of 0.1 UTM per hectare for exploitation concessions that develop early work accredited with the delivery of input.geological formation, to be certified by the National Geology and Mining Service (Sernageomin) every two payment periods.Eliminates the patent reduction of 0.1 UTM for holders of one or more mining properties of less than 500 hectares and who carry out work within the area of at least one concession.Eliminates the consanguinity criterion for the calculation of 500 hectares.Restores the obligation of the concessionaire to maintain and preserve standing the State landmarks placed in the vertices of the membership or the perimeter of the group of memberships, without being able to alter or change them. This will be subject to a fine of between 10 and 200 UTM. If one or more landmarks are demolished or destroyed, the judge will order their replacement in their original place. The Undersecretary of Mining, Alvaro Gonzalez.
