Chile unveils capital markets bill to draw investment into junior mining

Chile's government has presented a draft capital markets reform designed to channel private investment into early-stage mining exploration, a move aimed at reinforcing the country's standing as the world's leading copper producer and a major lithium supplier.

The bill, promoted by the administration of President Jose Antonio Kast, would create a dedicated investment framework for junior exploration and innovation companies. The proposed regime is intended to ease market access, reduce operating costs, and align local regulations with international norms, helping Santiago compete as a regional financial hub.

Economy and Mining Minister Daniel Mas described exploration as the core of mining but acknowledged its high-risk nature. "By integrating mining exploration into capital markets, we intelligently diversify that risk and attract global and national investment funds seeking profitability and sustainability," he said.

Under the plan, eligible junior firms would bypass the traditional national Securities Registry and instead operate under a simplified regulatory regime. They would be overseen by a designated sponsoring agent responsible for ensuring compliance and ongoing disclosures.

To attract investors, the package includes capital gains tax exemptions on share sales and mechanisms that allow backers to write off greenfield exploration expenses.

The legislation also extends beyond the resource sector. It proposes exempting exported financial services from Value Added Tax and expanding tax relief for non-resident investors. Additional social measures include simplified access for first-time home buyers and enhanced tax incentives for voluntary pension savings.

If enacted, officials expect the streamlined framework to let private capital absorb early-stage geological risks, potentially leading to new mineral discoveries that generate long-term tax revenues, royalties, and employment.