Copper Mining Facing Significant Regulatory Threat

Chile Miner Antofagasta Is On Longest Losing Streak Since 2017 (BBG)

• Chilean copper mining is facing its biggest regulatory threat since the industry took off more than three decades ago. Chile elected an assembly that places the writing of a new constitution largely in the hands of the left wing, potentially leaving mines vulnerable to tougher rules. The weekend vote may also add momentum to a bill to create one of the industry's heaviest tax burdens.
• Potential early evidence comes from Lundin Mining Corp., which recently spent $1 billion upgrading its copper operation in Chile. They have announced they will monitor potential rule changes in the country before proceeding with an estimated $500 million underground expansion there, said Chairman Lukas Lundin.
• In a sign of South America's shifting political winds, the billionaire mining clan is holding off on new investments in Chile because of the enhanced domestic risk while looking to move forward with a potential multibillion-dollar project in Argentina.

The chart below shows the sharp decline in Antofagasta PLC since the start of May.

MNI/Bloomberg