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| Chilean Mining Code | |
|---|---|
| Name | Chilean Mining Code |
| Enacted | 1983 |
| Jurisdiction | Chile |
| Administered by | Servicio Nacional de Geología y Minería, Subsecretaría de Minería |
| Related legislation | Constitution of Chile (1980), Código Civil de Chile, Ley Orgánica Constitucional |
| Status | in force |
Chilean Mining Code
The Chilean Mining Code is the principal statutory framework regulating mineral exploration, extraction, and mineral rights in Chile. It coordinates institutional actors such as the Servicio Nacional de Geología y Minería, the Subsecretaría de Minería, and the Ministerio de Minería with constitutional norms like the Constitution of Chile (1980), and interfaces with international instruments such as the United Nations Convention on the Law of the Sea and bilateral investment treaties including treaties with Spain, United States, and China. The Code has shaped interactions among private firms like Codelco, BHP, Anglo American plc, Goldcorp and state actors including the Comisión Chilena del Cobre.
The Code originated in the 19th century amid the War of the Pacific era mineral booms and successive reforms under presidents such as Domingo Santa María, Arturo Alessandri, and Eduardo Frei Montalva, culminating in the consolidated 1983 statute during the Military dictatorship of Chile (1973–1990) led by Augusto Pinochet. Subsequent amendments responded to events like the nationalization of Codelco in the 1970s, the rise of multinational corporations including Anaconda Copper, legal disputes resolved at arbitrations under International Centre for Settlement of Investment Disputes and investor-state cases involving companies from Canada, Australia, and United Kingdom. Reforms also reflected environmental incidents near projects such as Cerro Colorado, water conflicts in the Atacama Desert, and jurisprudence from the Courts of Appeal of Chile and the Corte Suprema de Chile.
The Code establishes principles of mineral ownership, the public domain of subsurface resources, and the separation between surface rights and subsurface concessions, interacting with the Código Civil de Chile and administrative law overseen by the Tribunal Constitucional de Chile. It defines legal instruments like mining concessions, exploration permits, and production licenses adjudicated by the Servicio Nacional de Geología y Minería with enforcement inputs from the Superintendencia de Medio Ambiente, and tax coordination with the Servicio de Impuestos Internos. The doctrinal basis draws on comparative law from jurisdictions such as Peru, Argentina, Australia, Canada, and South Africa and is informed by decisions from arbitral bodies under rules like the UNCITRAL Arbitration Rules.
The Code provides mechanisms for granting mineral rights via registry-based concessions, with procedural interaction with land titles held under the Registro Conservatorio de Bienes Raíces and negotiated access involving owners in regions such as Antofagasta Region, Atacama Region, and Coquimbo Region. Rights allocation affects major operations at deposits like Escondida, El Teniente, Chuquicamata, Los Bronces, and El Salvador (mining) and involves stakeholders including Codelco, Barrick Gold, SQM, Antofagasta PLC, and numerous junior companies listed on exchanges such as the Santiago Stock Exchange, New York Stock Exchange, and Toronto Stock Exchange. Concession regimes interact with surface easements, water rights under Dirección General de Aguas, and infrastructure corridors managed with entities like Empresa Nacional del Petróleo and municipal authorities such as the Ilustre Municipalidad de Antofagasta.
Fiscal rules under the Code and complementary statutes coordinate royalties, corporate taxation, and special mining levies administered by the Servicio de Impuestos Internos and fiscal policy set by the Ministerio de Hacienda. The regime has been debated in legislative forums including the Congreso Nacional de Chile with proposals referencing models from Australia and Canada; major producers such as Codelco and multinationals including BHP and Anglo American plc are central to revenue projections. International lenders like the World Bank and Inter-American Development Bank have influenced fiscal modelling, while sovereign concerns invoke instruments such as the Ley de Presupuestos and oversight by the Contraloría General de la República de Chile.
Environmental permitting for mining activities requires compliance with the Sistema de Evaluación de Impacto Ambiental, coordination with the Ministerio del Medio Ambiente, and scrutiny by the Superintendencia del Medio Ambiente. Project assessments for developments near sites like Salar de Atacama, Huasco Valley, and Río Choapa involve environmental impact studies, public participation processes anchored in statutes influenced by the Convention on Biological Diversity and Ramsar Convention when applicable. Operators such as SQM and BHP must secure permits addressing water usage regulated by the Dirección General de Aguas and affect protected areas including Parque Nacional Lauca and Reserva Nacional Pampa del Tamarugal.
Mining operations intersect with rights of indigenous peoples including communities of the Aymara, Atacameño, Diaguita, and Mapuche, invoking constitutional protections in the Constitution of Chile (1980) and international instruments like the International Labour Organization Convention 169. Consultation and benefit-sharing processes have been litigated in venues such as the Corte Suprema de Chile and debated in the Congreso Nacional de Chile, with particular sensitivity in regions including Tarapacá Region and Los Lagos Region. Cases involving companies like Pan American Silver and local cooperatives illustrate tensions mediated by administrative agencies and tribunals including the Servicio de Evaluación Ambiental.
Enforcement mechanisms involve administrative sanctions by the Superintendencia del Medio Ambiente, civil litigation in the Corte Suprema de Chile and regional Cortes de Apelaciones, and international arbitration before forums such as the International Centre for Settlement of Investment Disputes and ad hoc tribunals under UNCITRAL Arbitration Rules. Compliance is monitored by agencies like the Servicio Nacional de Geología y Minería and the Servicio de Impuestos Internos, while high-profile disputes have implicated multinationals including Barrick Gold, BHP, Anglo American plc, and state entities like Codelco leading to settlements, injunctions, and regulatory reforms debated in the Congreso Nacional de Chile and reported by domestic media outlets such as El Mercurio and La Tercera.
Category:Mineral law