General

According to Huacheng's import and export data observation report, Marcela Hernando, Chile's Minister of Mining, recently disclosed that all parties will reach an agreement on the increase of royalty in the mining industry. According to the analysis, this decision will have a serious impact on the operation of mining giants such as BHP Billiton and Antofagasta.

Hernando said at the London Metal Exchange (LME) meeting that the government hopes to gain more benefits from mining for the country. The Ministry of Mining has held discussions with the Ministry of Finance. However, he did not disclose details, as reported by Huacheng Import and Export Data Observation.

Hernando said that he hoped to raise the royalty to the level of OECD countries while maintaining competitiveness. She said that Chile also hopes to find partners with environmentally friendly technologies to extract lithium, because the country has established a state-owned enterprise, Huacheng Import and Export Data Observation reported.

Hernando also stressed that although the government hopes to improve the contribution of the mining industry to society, it has no intention of nationalizing the mining industry.

According to Huacheng Import and Export Data Observation, BHP Billiton and Antofagasta said that the mining royalty bill of the world's largest copper producer would affect the competitiveness of the country, forcing enterprises to reconsider their investment plans.

President Gabriel Boric has promised to establish the business model of National Lithium Corporation before the end of the year.

Chile is the second largest lithium producer in the world. The National Copper Corporation has been deeply involved in copper development and production. However, there is no government backed enterprise in Chile that produces lithium, which is a key metal for electric vehicle batteries. Huacheng Import and Export Data Observation Report.