Chile's mining ministry calls for continued high standards under new leadership

➤ Chile's mining ministry reported a positive balance for the outgoing administration, citing new policies.

➤ The outgoing mining ministry highlighted the importance of maintaining high sustainability standards amid the energy transition.

➤ Mining investment projects in Chile are expected to total $104 billion over the next decade, the highest figure in 11 years.

Chile released its National Critical Minerals Strategy on Jan. 27, just months before the end of Gabriel Boric's administration and the appointment of Suina Chahuán Kim as deputy mining minister.

This strategy is the final initiative from the outgoing mining administration, as Chile's newly elected president, José Antonio Kast, will take office on March 11 along with the new minister of mining and economy, Daniel Mas, and Álvaro González as deputy minister.

Platts, part of S&P Global Energy, spoke with Chahuán Kim about the performance of the mining industry over the past four years and expectations for the future.

This interview has been edited for clarity and space. All references to tons are metric tons.

Platts: What is the balance of Chile's portfolio over the past few years, and what reflections do you draw at the end of your term?

Suina Chahuán Kim: In general terms, we make a positive assessment, and if I had to perhaps prioritize certain areas, I would say that a strong initial line of work for the ministry was to encourage investment, to be able to implement new projects, both in copper and lithium, as well as in other minerals that would allow us to increase our production in the future. For example, implementing the national lithium strategy and enabling new projects.

We approved a structural reform regarding sectoral permits to make our investment system more agile. We also enacted a royalty law that increased investor certainty, and we have approved the first sectoral plan for adaptation and mitigation to climate change.

We see this reflected in the mining investment project portfolio for the next 10 years, which amounts to $104 billion, the highest figure Chile has seen in the last 11 years.

Is Chile prepared for the demand requirements will come in the next four years?

What we have done is precisely prepare the mining ecosystem. On the one hand, environmental standards have been raised, but efforts have also been made to ensure favorable investment conditions.

In the global copper market, competitors are also significantly increasing production, but we believe that Chile has a high standard of sustainability, with transparency and participation among other factors.

According to Cochilco's [Chilean Copper Commission] projections, we will reach peak production of around 6 million tons by 2027. In lithium, we aspire to double our production in the next 10 years.

The recent alliance between [Sociedad Química y Minera de Chile SA] and Codelco could increase lithium production by 200,000 tons by 2030 and then maintain it steadily until 2060.

So, there is a tangible example of how we will increase production in the short term to meet global demand. We have also worked on new projects, including the Cerro Maricunga and Alto Andino projects, led by our public companies, as well as some smaller projects led by private companies.

What are the main objectives of the National Critical Minerals Strategy and What are the expectations from it?

It's a roadmap for defining which minerals are critical to Chile and setting standards for developing these minerals over the coming years.

The major producers have been developing strategies for critical minerals over the last 10 years, including Australia, Canada and other countries. Therefore, this is a need we identified some time ago, and we began to work on it in the second quarter of 2024.

The strategy has five pillars, which are the areas in which we believe it must advance to achieve the production target. These points include production and diversification, opportunities for value addition, and international insertion, for which we have established a robust agenda.

Probably one of the most recognized abroad was the bilateral relationship we are strengthening with India. We hope that these ties will continue to strengthen, opening a market that undoubtedly represents not only a potential major buyer but also a partner in strategic technology issues and others that can be very important for advancing in Chile.

Government spokesperson Camila Vallejo warned that the situation that occurred in Venezuela, where the US removed President Nicolas Maduro on Jan. 3, could repeat in any Latin American country with resources such as copper and lithium. Are there any concerns about the future?

We are living in complex global times. We need to continue building relationships with different markets, always clearly attentive to what is happening in the current situation.

Particularly in Latin America, we have been facing certain tensions for many years regarding the exploitation of natural resources. For this reason, we have also focused on raising our standards to be a reliable partner, and I believe we must continue along this line.

The industry expressed dissatisfaction with the appointment of Daniel Mas as head of the Ministry of Mining as well as the Ministry of Economy, Development and Tourism, calling it a mistake because the role is not focused on mining. What is your perspective on this decision?

The industry has reacted with concern to the dual-minister structure. We have seen that the interpretation given is, in some way, that this would be a signal of not placing enough emphasis on such a relevant portfolio as the mining sector, especially for a country like Chile. However, it is not my place to judge the decisions of the elected president.

We will fulfill a handover process, and for that, we are working intensively with the ministry teams to ensure that the house is in order. Bilateral meetings between the current ministers and those who will take over in March are gradually being held.

We are handing over to the government under macroeconomic conditions that are more favorable than have been seen at the beginning of any other government. We believe it must continue this path of growth, and we hope that the public policies that support it will be implemented in the coming years.