Dear Director: As the world demands more critical minerals, the country is making it more expensive to produce them. The rise in fuel prices is not just an inflationary phenomenon. In mining, it defines costs, affects profitability, and, in many cases, determines the viability of projects.
This hits small and medium-sized mining particularly hard, where margins are tighter and the ability to absorb shocks is limited. Additionally, the increase in licenses raises fixed costs and strains the viability of operations, especially in early stages. It also influences larger-scale investment decisions, in a context where capital compares conditions across jurisdictions.
While other countries advance in incentives, regulatory stability, and reduction of base costs, in Chile, there are persistent signals in the opposite direction. The problem is that this effect is not immediately visible, but it accumulates in projects that are not presented, explorations that are postponed, and decisions that are made in other countries. If Chile wants to consolidate its position in the global supply of strategic minerals, it is not enough to look at demand; it is essential to safeguard the conditions that make investment possible.
Otherwise, the cost will not only be energy-related but also productive, labor-related, and ultimately, one of growth.