Chile reduces mining permit processing times by nearly 70%

Chile has made significant strides in speeding up the permitting process for mining and energy projects by approving legislation that aims to attract more investment into the country. The South American nation, which is the world’s largest copper producer and the second-largest supplier of lithium, is taking steps to reduce permit processing times by up to 70%, leading to improved efficiency without compromising environmental and regulatory standards.

The country’s Congress overwhelmingly supported the legislative changes, with 93 votes in favor, 27 against, and 17 abstentions. The amendments modify over 40 sector-specific regulations and are now awaiting the president’s final approval before becoming law. Economy Minister Nicolás Grau expressed optimism about the impact of the reforms, stating that it will help to speed up the approval process while upholding stringent regulatory requirements.

The move comes in response to mounting pressure from the mining sector and renewable energy companies, which have long criticized the slow pace of permit approvals as a barrier to attracting much-needed investments. Project approvals in the mining industry, in particular, have been known to take up to 12 years, stifling potential economic growth and development. Although the recent changes are seen as a step in the right direction, industry stakeholders believe that more work is required to further improve the permitting process.

President of the National Mining Society (SONAMI), Jorge Riesco, acknowledged the government’s efforts to streamline the approval process but emphasized the need for additional measures to enhance efficiency. The reforms are expected to have a significant impact on the Antofagasta region in northern Chile, a vital area for mining investment. Matías Muñoz, the Regional Secretary of Economy, highlighted the benefits of faster permitting timelines, stating that they would not only expedite project execution but also provide greater certainty for regional and national economic planning.

A key component of the reform is the establishment of the SUPER platform, a digital one-stop shop for permit applications that offers end-to-end traceability, service interoperability, and real-time case tracking. This platform will work in conjunction with the Sectoral Authorizations and Investment Office, which will oversee and modernize the permitting framework. Despite recent declines in copper production, Chile is poised to maintain its status as the world’s leading copper producer, with its share of global output expected to increase from 23.6% in 2024 to 27.3% by 2034, according to the country’s state copper commission, Cochilco.