Chile tax stability agreements expected to be upheld, Teck CEO says

Tax stability agreements made between mining companies and the government of Chile are designed to be non-negotiable and are expected to be respected if proposed changes to the country’s royalty system are made, the chief executive officer of Teck Resources said.

Chile’s Senate will this week discuss a proposal recently approved in its lower house to introduce a controversial mining royalty bill that could see sales of copper taxed at an effective rate of more than 32%, Don Lindsay noted.
“Now we understand that the bill that has been passed by the chamber of deputies that will start discussion this week in the Senate in Chile does not include any references to tax stability agreements that are in place in the country,” Lindsay told Bank of America’s Global Metal, Mining and Steel conference on Tuesday May 18.

“We trust the Chilean institutions – the stability agreements were offered on a transparent and uniform basis under Chilean law and therefore are theoretically not negotiable,” he...

Published

Andrea Hotter

May 19, 2021

01:36 GMT

New York