Chile Bill Would Raise Copper Tax Burden to 47-74%, CEP Says (1)

(Adds comment from minister in fourth bullet) The Chilean government’s royalty proposal would raise the total tax burden for large copper miners to between 47% and 74% on earnings, depending on metal prices, think tank CEP wrote in a report.

• For companies that produce less than 100,000 tons a year, the effective rate would be 56% to 70%, up from today’s 36-43% range, CEP found
• The bill would place Chile above tax rates in its copper-producing peers and would hit lower-margin firms harder
• “In conclusion, the Mining Royalty proposal as it is in Congress could put the country’s ...