Mining: Environmental Commission in Chile approved the nationalization and put an end to concessions

Yesterday, the Commission on the Environment and Economic Model of the Chilean Constitutional Convention voted on 12 proposals related to mining exploitation and property in Chile, submitted by conventional parties or through popular initiatives, advancing towards the nationalization of mining companies once the future Magna Carta is approved.

The newspaper La Tercera reported that by 13 votes in favor, three against and three abstentions, the conventional approved a mining statute initiative (873-5), which in its sixth transitory article establishes that, once the Constitution is promulgated, the State will have a term of one year to nationalize the companies that work with metallic, non-metallic minerals and hydrocarbons, among others, as determined by the President of the Republic.

The rule is not clear -remarks the newspaper- on whether the companies will receive compensation, because in a paragraph it states that they will not be compensated (“there will be no compensation whatsoever for rights to mineral substances and hydrocarbons“, it says).

But then it is stated that the Comptroller will determine the amount to be compensated and immediately afterwards says that the compensation will be according to the book value of the company.

The proposal establishes that it will be the President of the Republic who sets the final amount and approves it by decree. Payment will have to be made within a maximum period of 30 years.

The initiative of the neighboring country also says that within three years all mining projects whose operation began before 1993 will be submitted to environmental evaluation, and that existing concessions in exclusion areas (such as glaciers) and on indigenous lands will expire immediately. .

The conventional also approved a proposal for a mining domain (721-5), which in its first article states that “upon the entry into force of this Constitution ownership of mining concessions will be extinguished”, and that the holders of the current mining concessions will have a period of five years to adapt to the new legal regime.

It also says that it establishes that a Mining Transition Commission will be set up, which will supervise the passage of each concession to the new regulation, considering whether they have caused environmental damage, whether it is a public or private company, and whether or not it has recovered its investment.

Another approved regulation (882-5) also in its transitory article establishes that there will be “without effect all the mining concessions granted under the validity of the mining codes of 1932 and 1983″, and that a system will be created by Sernageomin to deliver licenses or permits.