GLNCY - Chile to modify copper royalty bill after company complaints

2023-03-21 14:25:42 ET

Chile's government will limit a copper mining royalty bill following criticism of its impact on the industry's competitiveness, Finance Minister Mario Marcel said Tuesday, according to Reuters.

Among several potential adjustments, one could establish a limit to the potential tax burden for the combination of various taxes, which would give "greater security or predictability to collection," Marcel said.

The minister said the royalty would have a fixed ad valorem component of 1% on copper sales and a part in the 8%-26% range, depending on the mining operating margin.

Chile is the world's largest copper producer, with major miners including BHP ( NYSE: BHP ), Antofagasta ( OTC:ANFGF ), Glencore ( OTCPK:GLCNF ) ( OTCPK:GLNCY ) and state-run Codelco.

ETFs: ( NYSEARCA: COPX ), ( CPER ), ( JJC ), ( JJCTF )

The co-head of metals and minerals at Trafigura, the world's biggest copper trader, predicted this week that copper prices could reach a new record high in the next 12 months .

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