Chile: The Land of Mining Investment Opportunities
Chile is a country that offers numerous investment opportunities in its thriving mining sector. For those considering investing in the Chilean mining industry or acquiring a mining concession, it is highly recommended to explore the use of due diligence services before making any investment decisions. These services provide an in-depth risk assessment, ensuring that you make informed and strategic investment choices.
Why Invest in the Chilean Mining Industry?
Chile is globally recognized as the largest copper producer, making it the biggest mining sector in Latin America. The mining industry plays a significant role in the nation’s economy, contributing to 10% of its GDP and 50% of its total exports. In addition to copper, Chile is also a major producer of lithium, molybdenum, gold, and silver, making it an attractive destination for mining investments. Despite recent economic slowdowns due to declining commodity prices, the industry is expected to accelerate, driven by increasing demand for lithium and recent governmental promises to stimulate investment in the mining sector. With a projected value of 33.2 billion USD in 2018 and 39 billion USD in 2021, now is the opportune time to consider investing in the Chilean mining industry.
Completing a Mining Legal Due Diligence in Chile
Before undertaking any mining-related ventures in Chile, it is crucial to conduct thorough due diligence. The following are essential tips for completing a mining legal due diligence in Chile:
- Individualization: It is imperative to have absolute clarity on the specific mining right being discussed, ensured through comprehensive registry checks and identification numbers assigned by SERNAGEOMIN.
- Type of mining right: Understanding the difference between exploration concessions and exploitation concessions, their durations, and property rights is key to informed investment decisions.
- Location: Knowing the precise location of the mining right and understanding any potential limitations for foreign entities is crucial.
- Extension: Understanding the size of the area included in the mining right is essential for planning and development.
- Minerals: Identifying the specific mineral substances within the concessions aids in evaluating the potential value of the investment.
- Ownership: Understanding the history of ownership of the mining right is vital to assess any potential risks.
- Encumbrances: Identifying any legal encumbrances, claims, or regulations attached to the mining right is crucial for a comprehensive risk assessment.
- Validity: Ensuring that the mining right is legally constituted and valid within the registry is fundamental.
- Tax payments: Understanding the tax obligations related to maintaining ownership of mining rights is crucial for financial planning.
- Territorial analysis: Assessing potential overlaps or superpositions of mining rights and identifying legal preferences in the area is crucial for negotiations and strategic planning.
For businesses seeking expertise in due diligence and mining in Latin America, Biz Latin Hub offers extensive experience and professional services to ensure success in the mining industry. Contact us today to explore the potential of mining investments in Chile and beyond.
Disclaimer: The information provided herein is for informative purposes only and should not be construed as formal guidance or advice. Consult a professional for specific situations, and stay informed about evolving regulatory landscapes.
