scary reality unfolding for miners in Chile...and Teck is talking up QB2 expansions?...lol

Politicians at the world’s top copper-producing nation are also fine-tuning a new mining royalty bill, which will raise tariffs on firms based on gross sales and profitability.

“We estimate that, if the new taxes are approved, Chilean copper mining companies could see their tax rates increase to as much as 80% and profit margins drop by more than 50% at current copper prices,” FTI said in its latest report.

The analysts believe that, while the likelihood of outright nationalization as proposed is small, a radical new royalty regime stands a much better chance. It could “push the Chilean tax system into pseudo-expropriation territory, especially with prices likely to stay above $4 per pound, which is where the 75% rate kicks in.”

They conclude that Chile could become the nation with the highest tax burden on copper mining, forcing companies to revisit the viability of their current and future investments.