Two candidates from completely opposite poles have the best chance of being elected in Sunday’s presidential election in Chile. Left-wing leader Gabriel Boric is likely to face ultra-conservative José Antonio Kast in the second round.
However, representatives of the mining sector will have no reason to celebrate, whether Boric or Kast win the presidential election. While in the event of Borico’s triumph, a significant role for the state in copper mining can be expected if Kast casts the presidency, the conditions under which copper is mined in Chile are likely to change.
For example, there is a dramatic increase in mining fees at stake, as the state will want to improve its budget balance, recognizing that copper is a strategic raw material for electromobility. And Chile is the world’s largest miner. And environmental standards are likely to be tightened.
According to some experts, the victory of both candidates may lead to a complete halt in the inflow of investment into the mining sector for some time. And that would affect the mining of lithium, another important metal for electromobility. “The sector is waiting for signals that would mean greater certainty and stability for investment decisions,” Alejandra Wood, executive director of the Center for Copper Studies in Santiago de Chile, told Reuters.