Chile

SANTIAGO, Chile, March 20 (UPI) — Mining companies BHP and U.S.-based Freeport-McMoRan submitted two copper projects worth more than $12.5 billion combined to Chile’s Environmental Impact Assessment System, marking one of the clearest signs of a revival in mining investment in the country.

BHP, through Minera Escondida, the world’s largest copper producer, submitted the “Nueva Concentradora Escondida” project valued at $5 billion, which would allow it to continue operations by replacing the Los Colorados plant. That plant is at the end of its useful life.

The project includes an ore processing capacity of 460 thousands of tons per day in the Antofagasta region. If approved, it would begin operations between 2031 and 2032.

Minera El Abra, the Chilean subsidiary of Freeport-McMoRan, is seeking to invest $7.5 billion to extend its operations by 40 years and increase its production by more than 300,000 metric tons of copper annually starting in 2033, once it becomes operational.

The initiative includes the construction of a concentrator plant, a desalination facility, among other projects.

Analysts say these investments respond to sustained growth in global copper demand, driven by electrification, power grids and the energy transition, although they also note that they are being accelerated by a shift in the local political environment after the arrival of a government led by José Antonio Kast.

As one of its first measures, the administration introduced the National Reconstruction Bill, which includes initiatives to reduce bureaucracy and streamline permitting.

The proposal includes lowering the corporate tax rate from to 23% from 27% to align it with countries in the Organization for Economic Cooperation and Development.

Finance Minister Jorge Quiroz told local media this week that the government aims to offer clear rules, legal certainty and an agile, non-discriminatory process that respects the environment.

“This investment will move forward smoothly,” he said, referring to the Escondida project.

The president of the Chilean Mining Chamber, Manuel Viera, said about $18 billion in projects are stalled due to bureaucratic hurdles in the permitting process.

“And in just one week, the president of the republic has indicated that they should be unlocked. That is a sign that signal has been well received by investors, and we expect news like those of Escondida and El Abra to continue in the coming months because Chile also needs more and better mining,” he said.

Cristian Cifuentes, senior leader of studies and content at the Center for Copper and Mining Studies, or Cesco, told UPI that the announcements represent a clear indication of a revival in mining investment, although the trend already had been emerging without such concrete evidence.

“It is a validation of Chile as a competitive jurisdiction in a highly capital-intensive global context,” he said.

He added that while investment decisions respond to global copper demand, their execution depends “critically on local conditions: permitting, institutional stability and political signals.”

“Any improvement in regulatory certainty or pro-investment narrative accelerates decisions that, in many cases, were already in the pipeline. At the same time, these filings show that, despite recent regulatory tensions, the country maintains baseline conditions that allow investment decisions to move forward,” he said.

Víctor Frangi, managing director of Delivery & Transformation at KPMG Chile, said the country is creating more favorable conditions to activate projects, in an environment in which copper demand is projected to increase by about 40% by 2040.

“Chile approved the Framework Law on Sectoral Authorizations, which seeks to reduce permitting times by between 30% and 70%, along with the modernization of the Environmental Impact Assessment System regulations to focus evaluations on projects with significant impact,” he said.

Frangi said that Chile now offers greater business certainty and a more limited level of risk, which facilitates large-scale investment decisions.

Analysts warn, though that growing regional competition to attract mining investment exists.

“Countries such as Argentina have improved their macroeconomic environment and promoted initiatives such as the Incentive Regime for Large Investments, positioning themselves to attract large-scale projects, such as Vicuña, a joint venture between Lundin Mining and BHP, with an estimated investment of $18 billion,” Frangi said.

He added that Peru and even the Democratic Republic of Congo also show dynamism.

“Chile faces the challenge of remaining competitive against other destinations that are also capturing investment. There are replacement and efficiency projects, such as the new Escondida concentrator, and changes in the operating model, such as the advance of desalination as a standard in water use,” Frangi said.

Viera said mining companies are seeking more copper deposits amid growing global demand.

He added that armed conflicts between the United States and Iran, as well as between Russia and Ukraine, have disrupted the balance between supply and demand.

“They have broken the balance of supply and demand. As armed conflicts increase, demand rises for critical minerals used in weapons manufacturing. These are factors driving the search for copper, iron and other minerals, in addition to demand linked to the development of technologies associated with climate change,” he said.

When Maria Corina Machado comes to town, you expect a lot of emotions. This week in Santiago, millennial bros swooned over her. Young women elbowed each other for a selfie. Cops had to contain throngs of people looking for a hug or a kind word. 

“Do you think I could take a picture with her?” inquired an anxious teenager. “She made me cry,” said an expressive professional woman. “She gives us all hope,” declared a curmudgeonly older gentleman with a trembling voice.

Mind you, this was the reaction from the Chileans.

Witnessing Maria Corina in action, particularly after her Nobel Prize win, is a sociological phenomenon. It’s not about her. It’s the effect she has on others. After a day tagging along to three different events, I felt I was seeing something very special. 

The irony is that these events happened on the same day that the New York Times reported that Trump had asked her not to go back to Venezuela just yet. The most popular figure in the country, the one who can really unite Venezuelans behind a bold new agenda aligned with Washington’s interests … and they want her stored in a cupboard a little longer. 

It’s baffling.

First off, the obvious: her political capital remains intact. If anything, it is bigger and more intense, surrounded by the veneer of real accomplishments and international recognition. The effect this political supernova has on Venezuelans, at least in this part of the world, is as strong as ever. Nobody in the country can conjure up this amount of goodwill. Give it up folks – it’s not even close.

But her aura goes beyond Venezuela. 

One event hosted by a local university brought together a veritable who’s-who of Chilean society – all the politicians, all the businesspeople, many academics … and me, el marido de Katy, lurking in a corner.

Maria Corina made her entrance with Chile’s new President, José Antonio Kast, and his wife Pía. People enthusiastically applauded Kast – which is natural, since he had been inaugurated the day before, won with 60% of the vote, and let’s face it, this was his crowd. 

Until the US realizes what they have, Maria Corina remains an elusive icon, patiently waiting for her time, planning, gaining strength, and keeping hope alive.

But Maria Corina garnered not one, not two, but three standing ovations. Hell, they stood up to applaud her when they announced her name. Kast and all the others were gracious enough to recognize the star power and bask in her aura. María Corina, if anything, seemed a bit embarrassed by it all.

Where does this come from?

It’s easy to reduce Maria Corina’s appeal to her masterful handling of emotions. We all know she talks about families ripped apart, about hugging, about the heroic 2024 campaign. “Mis adorados venezolanos” peppers her speeches.

However, I think it goes beyond that. The key to her connection with people is trust.

As the great Frances Frei explains, trust in leadership depends on three things: empathy, logic, and mastery.

The empathy part we know. Her speeches are tinged with the tragedy that has befallen us all: lost dreams, broken families, violence that belies belief. 

Yet it’s in the logic and the mastery that she brings it home.

The way that she frames the Venezuelan drama makes all the logical sense in the world—it’s about good and evil, about criminal networks controlling the State, and about a regime that has sown division. Fifteen years ago, we at Caracas Chronicles used to dismiss this rhetoric as extreme. It was all true, and now we know, and it all makes sense.

And that is where the mastery part comes in. Her speeches also contain a nod to the learning that has happened in Venezuela. People listening seem to know—now—that freedom is worth fighting for, that there is no free lunch, that respect and decency have a place at the table. Expropiar es robar. Indeed.

Her speech, delivered impeccably, with no teleprompter, links these three elements together in a way that makes both the cynic and the true believer nod in agreement.

How on Earth does the US administration not see that this is a rare political asset that needs to be deployed? 

Mind you, she wasn’t perfect. At that event, I thought she missed an opportunity to talk about the business opportunities a free Venezuela would have for Chilean companies. In her speeches, she does not effectively address the raging xenophobia many Venezuelans abroad face. 

But those are minor things.

Venezuela faces many tough choices in the coming years. Policy decisions will not be easy, and it’s going to take an enormous amount of political skill to see them through. Only someone like Maria Corina can conjure up the trust of the Venezuelan people that can deliver the difficult decisions that lie ahead. 

The US has an ally waiting to work on what needs to be done. Nobody in the country has what she has. She is aligned with you. She gave you her damn medal. She’s right there.

Until the US realizes what they have, Maria Corina remains an elusive icon, patiently waiting for her time, planning, gaining strength, and keeping hope alive. You won’t see these kinds of events in Miami or Houston. It’s not part of her plan. They want her to keep a low profile, for now. That’s a shame. 

She’s a star. Interrupted.