Chile to allow miners to take out insurance to cover closure costs
In a bid to boost small and medium-size miners, Chile's congress has passed a bill to update the 2011 mine closure law with the aim of providing a mechanism to alleviate the financial burden assumed by the owners of mining projects.
The bill was approved by 95 votes in favor, eight against and five abstentions. It is now ready to be enacted into law by the government.
The law will extend the financial instruments that can be used by mining companies for their mine closure plans, allowing them to take out insurance policies to cover closure costs.
This new instruments will free up additional capacity in companies' credit lines and will allow them to use these resources as working capital.
Under the previous law, if a company abandoned a mine, the government executed the firm's guarantees and gave the money to mining and geology service Sernageomin, which then hired a third party to carry out the closure plan.
Mining minister Baldo Prokurica said that "the companies that have warranty bills to guarantee closure plans are going to have another alternative in terms of contracting insurance to ensure the closure of mine operations if a company does not comply.”
Currently there are guarantees in place worth more than US$3bn, resources which are effectively in limbo and if something is not done, this figure could rise to US$8bn by 2023, the minister added.
The new law will also require the prior authorization of Sernageomin to renew or replace financial instruments held in custody, either to increase or decrease the amounts or the conditions of their transfer to another custodian.
The law establishes that insurance policies can be issued by national insurance companies. Payment would be made to Sernageomin at its request, within the term established by the policy.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Mining & Metals (Chile)
Desal costs remain a challenge for Chile's mid-sized miners
Only large projects can afford desalination plants. Joint company efforts and public-private cooperation are possible solutions, according to the h...
Battery Mineral Resources raises capital to revive Chile copper project
The Canadian company is preparing to restart its Punitaqui project in Q2.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Mining & Metals (Chile)
Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Operational Continuity Mina Dos Amigos
- Current stage:
- Updated:
5 years ago
- Project: Emission Control System Huasco Pellets Plant
- Current stage:
- Updated:
5 years ago
- Project: IRON ORE EXPLOITATION SYSTEM MAGNETITE MINE AND MAGNETITE CONCENTRATION PLANT MAGNETITE 1 TO 30 OF THE SIERRA MONARDES
- Current stage:
- Updated:
5 months ago
- Project: Construction of 4 Flow Lines and Hydraulic Fracturing of 4 Multi-wells in the Arenal Block
- Current stage:
- Updated:
1 year ago
- Project: Modification reception and shipment of bulk minerals
- Current stage:
- Updated:
3 years ago
- Project: FLORIDA MINING EXPLORATIONS
- Current stage:
- Updated:
3 years ago
- Project: San Cayetano Mining Project
- Current stage:
- Updated:
2 years ago
- Project: El Llano Photovoltaic Park
- Current stage:
- Updated:
2 years ago
- Project: Iván Plant Operational Continuity
- Current stage:
- Updated:
2 years ago
- Project: Cabimas Photovoltaic Project
- Current stage:
- Updated:
3 years ago
Other companies in: Mining & Metals (Chile)
Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Alejandro Rojas
- Company: Agencias Universales S.A.  (Agunsa)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Rio Tinto Mining and Exploration Limited, Agencia en Chile  (Rio Tinto Mining and Exploration, Agencia en Chile)
-
Rio Tinto Mining and Exploration Limited, Agency in Chile is a Chilean subsidiary of the Rio Tinto mining company. In September 2019, the company signed an acquisition agreement...
- Company: Sigdo Koppers S.A.  (Sigdo Koppers)
-
Sigdo Koppers is a Chilean business holding company with operations on five continents and activities in the service, industrial, and commercial and automotive sectors. The serv...
- Company: Aclara Resources Inc.  (Aclara Resources)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...