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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.

Tehran, Iran – Senior religious leaders have signalled that Iran’s government may soon announce a new leader as hardliners and sidelined reformists deliberate their futures amid the quickly escalating United States-Israeli war on Iran.

Mohammad Mehdi Mirbagheri – a top figure in the 88-member Assembly of Experts, which will appoint the new supreme leader after Ayatollah Ali Khamenei was killed in Tehran on February 28 – said the choice had to be made with care so it would be indisputable internally.

“An almost decisive opinion has been reached. A significant majority has been formed, but at the same time, some obstacles have to be removed, which we hope will happen soon,” the head of the Qom Academy of Islamic Sciences said in a video released on Sunday by the Fars news agency, which is affiliated with the Islamic Revolutionary Guard Corps (IRGC).

The top ultraconservative Muslim leader representing the holy Shia city of Mashhad in the Assembly of Experts, Ahmad Alamolhoda, said on Sunday that the leader has been chosen and the secretariat of the Assembly of Experts must soon announce the result.

Abbas Kaabi, a senior member of the Guardian Council, said on Friday that the powerful 12-member constitutional body was not given any names to consider for the next supreme leader by Khamenei during his lifetime, only attributes.

“He said: Among all attributes, the financial piety of the supreme leader is of primary importance because, given the important powers and responsibilities of leadership, if financial deviation occurs, it will spread to all other matters,” Kaabi was quoted as saying by the IRGC-affiliated Mehr news agency.

The religious leader also quoted Khamenei as pointing to “a rooted belief in the fundamentals of the [1979] Islamic revolution, having insight and knowledge of enemies and sedition, and especially being anti-arrogance and having faith and resistance in confronting America and the Zionist regime” as being among other top attributes for a future leader.

Mojtaba Khamenei, the second son of the late supreme leader, is believed to be a frontrunner for the position as he enjoys wide backing from powerful commanders in the IRGC who have been launching missiles and drones across the region over the past week.

US President Donald Trump, who has said he wants to play a role in determining the future leadership of Iran, has objected to the younger Khamenei’s ascension.

The Israeli army has said it will try to assassinate Iran’s remaining leaders and has bombed their offices and gathering spots in Tehran, Qom and other cities. Israel and the US have repeatedly expressed their interest in changing the government of Iran.

Israeli media reported on Saturday that Asghar Hejazi, a senior religious leader who was Khamenei’s acting chief of staff, was killed in a series of overnight air strikes targeting an underground compound in downtown Tehran used by the supreme leader and other officials. Iran has not commented.

Reformists weigh in as Pezeshkian creates row

President Masoud Pezeshkian came under fire after he released a video from an undisclosed location on Saturday and apologised to regional neighbours who have been fighting off Iranian missiles and drones.

The armed forces leading the military attacks, including the Khatam al-Anbiya Headquarters of the IRGC and interim leadership council member and chief justice of the Supreme Court, Gholam-Hossein Mohseni-Ejei, quickly released statements to emphasise that the strikes would continue, with Iran as well as the US and Israel, saying they are ready for months of war if necessary.

The row prompted more hardliners, including religious leaders, lawmakers and IRGC-affiliated media, to call on the Assembly of Experts to move quickly to announce the next supreme leader. Ayatollah Hossein Nouri-Hamedani said the process should be expedited to “disappoint the enemy and preserve the unity and solidarity of the nation”.

The disagreement has broken out after reformist factions within the establishment have been pushed aside by hardliners in recent years while the conservatives also have lost favour among an increasingly disillusioned public.

Mohammad Khatami, a reformist religious leader who was president from 1997 to 2005, released a statement to mourn Khamenei last week but also signalled that he sees a future for a reformed Islamic Republic.

The establishment is in need of “reforming approaches and practices objected to by the people”, he said without naming any examples.

“Our path is the path of freedom, independence, people-centrism and fair living, and that is a difficult path to tread and requires wisdom and tolerance,” he said.

Khatami and the Reformist Front of Iran also released general calls for reform after thousands of people were killed during nationwide protests in January.

The Iranian government said “terrorists” backed by the US and Israel were responsible for the killings, but the United Nations and international humanitarian organisations blamed state forces for a lethal crackdown against peaceful protesters.

The leaders of the Reformist Front were arrested or summoned by Iranian intelligence and judicial authorities last month for what the establishment called an attempt to “disrupt the country’s political and social order” and working “for the benefit” of Israel and the US during the antigovernment protests.

Most have since been released on bail, but some remain incarcerated as do many of the tens of thousands of people believed to have been arrested during and in the aftermath of the protests.

Hassan Rouhani, the moderate religious leader who was president from 2013 to 2021 and who rejected being part of a reported power grab last month, has remained publicly silent during the deliberations over the next supreme leader.

Former President Mahmoud Ahmadinejad, another influential figure, survived an assassination attempt last week, according to Iranian media.

Fuel reserves and oil refineries in Tehran were bombed by the Israeli military overnight into Sunday, leaving thick plumes of smoke enveloping the sprawling city of 10 million people during the day as oil residue fell as part of a heavy rain.