Will mining investors buy into Chile’s ‘new deal’?

Eva Salinas | March 12, 2015
Chilean mining officials were in Toronto last week for Prospectors and Developers Association of Canada (PDAC)’s annual convention — bringing with them new branding for the country’s mining sector.
The delegation arrived just days before President Michelle Bachelet completed the first year of her current term in office. Since her term began in March, 2014, her government has spent months convincing foreign investors that a tax reform to finance improvements to the public education system is a win-win situation.
That was the message this year at PDAC, where the country’s Vice Minister of Mining, Ignacio Moreno, sat down with OpenCanada to discuss a “new deal” between communities and mining companies.
Chile’s congress approved Bachelet’s tax reform package in late 2014, despite criticism from the business sector that it will be a disincentive for foreign investors. The new tax laws, which will not come into full effect until 2017, will no longer allow companies to retain profits without paying tax for several years.