Chile is opening its capital markets to junior explorers as the world’s top copper producer and second-largest lithium supplier seeks more investment to fund new mineral discoveries.
The Senate-approved bill, spearheaded by President Jose Antonio Kast’s administration, would create a dedicated investment framework for junior exploration and innovation companies. It would also change how reduced mining fees are applied to exploitation concessions, aiming to streamline the process and strengthen legal certainty.
The proposal includes a new basis for reducing fees for exploration concession holders, removing the need for producers to apply for the benefit every year. More broadly, the government wants to lower operating costs and align Chile’s capital markets with international standards.
“Exploration is the heart of mining, but it is a high-risk stage,” Economy and Mining Minister Daniel Mas said. “By integrating mining exploration into capital markets, we intelligently diversify that risk and attract global and national investment funds seeking profitability and sustainability.”
The changes could address a longstanding financing hurdle for junior miners, which rely heavily on private capital because conventional stock market rules are generally designed for larger, established companies. Listing, corporate governance and continuous disclosure requirements can impose costs that are disproportionate to the size of early-stage explorers.
Under the proposed framework, eligible juniors could instead access a simplified regulatory regime tailored to their stage of development without registering under the national Securities Registry. A designated sponsoring agent would oversee regulatory compliance and continuing disclosure.
Investors would also receive financial incentives, including capital gains tax exemptions on share sales and mechanisms allowing them to write off greenfield exploration expenses.
The government expects private capital to shoulder more of the geological risk associated with early exploration, potentially leading to discoveries that generate future tax revenue, royalties and jobs.
Exploration squeeze
Chile attracted a projected $874 million in exploration spending in 2025, according to the Chilean Copper Commission (Cochilco), ranking fourth globally by exploration budget. Copper accounted for 76% of the total, or $669.6 million, while only about $206 million was directed toward initial exploration.
Total exploration investment increased by $80.7 million from 2024, but spending has become increasingly concentrated in larger programs, primarily those run by major mining companies.
The National Association of Small and Medium-Sized Miners, Agrumin, supports the proposal as a way to prevent rising payments from contributing to the loss of mining properties through auctions and further concentrating ownership.
Agrumin said producers have struggled to qualify for reduced mining fees because of eligibility requirements and a high rejection rate for documentation submitted to the National Geology and Mining Service, or Sernageomin, to certify projects as small-scale mining operations.
The National Mining Society, Sonami, has meanwhile called for the suspension of court-ordered auctions of mining claims with unpaid fees scheduled for Oct. 15. It argues that proceeding with the auctions could undermine the effectiveness of the reform while lawmakers are still considering it.
The legislation extends beyond mining. It would exempt exported financial services from Value Added Tax, expand tax relief for non-resident investors and introduce measures covering first-time home buyers and voluntary pension savings.
For Chile’s mining industry, the central test will be whether easier market access and tax incentives can channel more investment into grassroots exploration rather than established projects, replenishing the pipeline needed to sustain future mineral production.
Source: https://www.mining.com/chile-bill-targets-foreign-cash-for-next-mining-boom/
