Page 19 - MONTT LATIN AMERICAN MAGAZINE, MAY 2021, (English)

ALERTA REGULATORIA
REGULATORY ALERT ALERTA REGULATORIA
ESTA SECCIÓN CORRESPONDE A UNA NUEVbAyHmEiRnRinAgMaIEcNtiTvAityDiEnMthOeNcToTmGmROuUnPesQwUhE eBrUeSCAfoRrEmEMoPfLAreZ AnReEdL mINiFnOeRraMlEwMilElNpSaUyALaDloEwer Argentina Colombia
Brazil
NOVEDADES LEGISLATIVAS Y GENERARthUeNrIeNsTpEeRcCtAivMeBIdOepINoFsOitRsMfAroTImVOwEhNiTcRhEtLhAeS DIvSaTlIuNeTAoSfOtFhICeINcAoSmDpEeLnAsaEtMioPnREeSqA.uivalent SOLICITAMOS ENVIAR LOS ANTmEiCnEeDrEaNlTisEeSxDtrEaLcAteSdÚaLTreIMloAcSaNteOdV,EtDoAwDEoSrkAs: ALtoERtThAeS@cMosOtNoTfTGreRO nUiPn.CgO. MRe ned mineral
Public Purchases
of development of critical infrastructure
and digital infrastructure in the regions
where mining is carried out or investment
refers to cathodes of at least 99,99 percent purity. The reduction of the compensation indicated will only be authorized to mining operators whose production is accredited by the Chilean Copper Commission, at the respective processing levels.
e) Notwithstanding the foregoing, of the total amount collected for royalty, up to three percent will be used to contribute to the nancing of the projects that the Ministry of Sciences, Technology, Knowledge and Innovation executes in relation to the scienti c development of research applied and advanced human resource training, found in the regions where mining is located. f) Compensation must be paid annually by the respective mining operator, in the case of concessionable mineral substances, while the concession is in force, and, in the case of non-concessional substances, from the start of extraction until its complete exploitation. A mining operator shall be understood to be any natural or legal person that extracts copper or lithium mineral substances and sells them in whatever productive state they are in.
g) However, this compensation will not be required from those mining operators whose annual sales do not exceed the value equivalent to 12,000 metric tons of ne copper.
h) A regulation will determine the way in which the speci c amount of compensation to be paid by each mining operator will be calculated, the opportunity and form of its payment, and any other circumstance that is required for the execution of this law.
i) Likewise, a regulation will norm the administration, operation, conditions, destination and distribution of the resources of the Regional Convergence Fund. Said regulation must establish the criteria and mechanisms through which the projects to be nanced with the resources of the Fund will be prioritized and awarded. In any case, those projects that nance development works in the mining regions of the country will be prioritized. The regulation must also regulate the criteria and mechanisms with which the projects that contemplate repair, mitigation or compensation measures for the environmental impacts that will be nanced in the communes referred to in the rst paragraph will be prioritized and awarded.
j) Transitory article: The compensation established in the law will only be applied in the sale of lithium and non-concessional minerals if said compensation is greater than that established in the respective leasing and exploitation contracts in force, established between the State of Chile through Corfo and private mining operators.
Montt Latin American Magazine p19
Argentina
The new legal framework for tendering and contracting by the public administration foresees a vacancy period of two years, enough time for public and private entities to adapt to the modi cations introduced. During this phase, the Auctions Law and most of the Tenders Law and the DRC will be in force.
The new Tender Law in Brazil allows the simpli ed participation of international companies. The attached announcements are from several areas of activity, and seek national or foreign companies to perform services or supply goods to Brazilian public entities.
It is important to mention that the documents
in infrastructure or research programs in
Brasil
Colombia
of the ad valorem value of the extracted
Chile
required to participate in this event will vary
state universities whose headquarters and rectory are located in the mining regions. b)In the event that the annual average price of copper, recorded according to the London Metal Exchange quotes, exceeds two dollars per pound, the compensation for that additional part of the price, between two dollars and two dollars and 50 US cents per pound of copper will be equivalent to 15 percent of the ad valorem amount of annual sales; for that additional part of the price greater than two dollars and 50 cents on the dollar, and up to three dollars per pound, it will be equivalent to 35 ve percent; for that additional part of the price greater than three dollars and up to three dollars and 50 cents, it will be equivalent to 50 percent; for that additional part of the price greater than three dollars and 50 cents, and up to four dollars per pound, it will be equivalent to 60 percent, and for that additional part of the price greater than four dollars, the pound will be equivalent to 75 percent.
c)The amount of compensation that exceeds three percent, referred to in literal b) above, will be used to nance a basic and universal emergency income in the context of the constitutional state of exception of catastrophe by covid-19 decreed by the President of the Republic by Supreme Decree No104, of 2020 of the Ministry of the Interior and Public Security, and its successive extensions. Once the aforementioned state of constitutional exception of catastrophe has ended, the amount of compensation indicated in the second paragraph will be used for general revenues of the Nation.
d) However, the additional compensation referred to in literal b) above may have a reduction to the marginal rates in each price bracket of the pound of copper that are above two dollars, for those mining operators who accredit a level of processing of the extracted minerals, according to the following criteria:
i) A ve percent reduction at the respective marginal rate, if the mining operator produces blister copper. Blister copper is understood to be the metallic material that can have at least 96 percent purity, once the concentrate has been melted.
ii) The seven percent reduction to the respective marginal rate, if the mining operator produces copper anodes. Copper anodes shall be understood as blister copper that, in a new re ning stage, reaches a purity of between 99,4 and 99,6 percent, and whose re ning allows obtaining copper cathodes; iii) That part of the copper sales in the
depending on the area in which the o er is active. The objective of the documents will always be to determine: legal quali cation, scal regularity, technical quali cation, economic-financial qualification and speci c complementary documents.
Chile
Mining Royalty Approved
By O icial Letter No 16,588, on May 6th, 2021, the Chamber of Deputies sent the Senate as approved the bill that establishes in favour of the State a compensation, called mining royalty, for the exploitation of copper and lithium mining, corresponding to bulletin No 12093-08, in order to continue its processing in the Senate, which must know and discuss it within its bosom to approve, reject or modify it, without prejudice to the fact that the Executive Power must also concur with its approval or rejection after the sanction of the Senate, exercising its constitutional rights.
Its main aspects including all its details are the following:
a) It establishes a compensation in favour of the State for the exploitation of the mining of copper, lithium and all the concessionable substances, equivalent to three percent
minerals. It must be allocated 25 percent to a Regional Convergence Fund, which
Chile
will be made up only of the communes that belong to the regions in which mining is carried out in accordance with the provisions of the law, which will nance regional and communal development projects in the form determined by the regulations. The remaining 75 percent will be used directly to nance projects that contemplate measures to repair, mitigate or o set the environmental impacts caused