Law No. 21649 Modifying Provisions of the Mining Code

Law No. 21,649, Modifying Provisions of the Mining Code; Law No. 21,420, which Reduces or Eliminates Tax Exemptions; and Other Norms in Chile, published on December 30, 2023, introduces significant changes to the country's mining legal framework. Key provisions include:

1. Mining Patents: The distinction between metallic and non-metallic concessions is eliminated. The value of non-metallic mining patents is increased, with exploration patents rising from 1/50 to 3/50 of the Monthly Tax Unit (UTM) per hectare .
2. Exploitation Concessions: For 2024, exploitation concessions will continue to pay 1/10 of UTM per hectare. Afterward, if mining properties do not meet specific criteria, they will face a progressive increase in patent costs.
3. Reduced Patent Hypotheses: The law establishes conditions under which mining properties can qualify for reduced patent rates, including effective mining work, favorable environmental qualification resolutions, and compliance with mining safety regulations.

These changes aim to streamline the mining sector and ensure better compliance with environmental and safety standards.

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