Chile's lower house approves controversial tax on copper, lithium sales

Chile’s lower house has voted to approve a controversial mining royalty bill that could see sales of copper taxed at a rate of more than 32%.

The bill will now go to the Senate, likely after upcoming elections to choose members of a commission to write the country’s new Constitutional convention, as well as the country’s municipality and regional governor elections - both this month.
Under the proposed bill, the tax on sales of copper will be 3% if the price is $2 per lb or less. But the tax rate will increase as the price of copper rises, to an effective rate of 5.4% at $2.50 per lb, up to 27.4% at $4.50 per lb and 32.3% at $5 per lb.

The London Metal Exchange three-month copper contract closed at $10,092 per tonne on Thursday April 6, up by...

Published

Andrea Hotter

May 06, 2021

21:03 GMT

New York