Chile’s Senate has approved a bill in general that targets mining patent reform as part of a broader effort to simplify the country’s concession system and encourage greater exploration activity. The legislation, now advancing to detailed consideration, aims to reduce administrative burdens on concession holders and improve regulatory certainty for companies operating in the mining sector.
Simplifying the Mining Concession System
The proposed mining patent reform would change how reduced mining fees are applied to exploitation concessions, streamlining what has been a cumbersome and repetitive process. Under the current system, producers must reapply each year for reduced fee benefits. The bill would establish a new basis for granting those reductions to exploration concession holders, removing the annual application requirement and lowering operating costs.
Economy and Mining Minister Daniel Mas noted that exploration is a high-risk stage of mining and that integrating mining exploration into capital markets could help diversify that risk while attracting both national and global investment. The government has framed the reform as a way to strengthen the legal framework surrounding concessions and make the system more predictable for companies at various stages of development.
The National Association of Small and Medium-Sized Miners, known as Agrumin, has expressed support for the proposal. The organization has pointed out that producers have struggled to qualify for reduced mining fees due to strict eligibility requirements and a high rejection rate for documentation submitted to the National Geology and Mining Service, Sernageomin, to certify projects as small-scale mining operations. Agrumin views the reform as a way to prevent rising fee obligations from forcing mining properties into auctions, which can concentrate ownership among larger operators.
The National Mining Society, Sonami, has called for the suspension of court-ordered auctions of mining claims with unpaid fees scheduled for October 15. Sonami argues that proceeding with the auctions could undermine the reform’s effectiveness while lawmakers are still deliberating on the bill’s specific provisions.
Exploration Investment and the Path Forward
Chile attracted a projected $874 million in exploration spending in 2025, according to the Chilean Copper Commission, Cochilco, ranking fourth globally by exploration budget. Copper accounted for 76% of that total, approximately $669.6 million, while only about $206 million was directed toward initial exploration. Although total exploration investment Chile recorded rose by $80.7 million from 2024, spending has become increasingly concentrated in larger programs run by major mining companies.
The mining patent reform seeks to address this imbalance by making it easier for smaller operators to maintain their concessions and access exploration opportunities. The bill would also create a simplified regulatory framework for eligible junior explorers, allowing them to operate without registering under the national Securities Registry. A designated sponsoring agent would oversee compliance and disclosure requirements.
It is important to note that the bill has been approved in general by the Senate and is not yet enacted into law. Detailed consideration of the legislation’s specific provisions is ongoing, and the final shape of the reform will depend on the outcomes of that process. The mining fee reduction provisions and other elements of the bill remain subject to further legislative review before any changes take effect.