UPDATE 1-Chilean lawmakers give final approval to mining royalty reform

Chile's lower house approved a long-awaited mining tax and royalty reform on Wednesday, which now only requires the signature of leftist President Gabriel Boric, who has publicly backed it, to become law. The reform will require large copper miners to pay more to the government.

Chile's lower house approved a long-awaited mining tax and royalty reform on Wednesday, which now only requires the signature of leftist President Gabriel Boric, who has publicly backed it, to become law.

The reform will require large copper miners to pay more to the government. Chile is the world's top copper producer, and the tax and royalty overhaul for the sector is part of the Boric administration's wider push to overhaul the country's tax system, a key part of which was shelved by Congress in March.

With 101 votes in favor and 24 against, lawmakers approved the modifications to the mining tax and royalty bill that were approved in the Senate last week. Under the reform, the total top tax rate will reach up to 46.5% for companies that produce over 80,000 tonnes of fine copper a year, considered a high tax rate by the industry.

It also establishes a 1% ad valorem tax on copper sales from companies whose sales exceed 50,000 tonnes of fine copper, as well as an additional tax ranging from 8% to 26%, depending on the miner's operating margin.

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