Chile's Mining Sector Raises Concerns Over New Leadership

Chile's mining industry is worried about a recent decision to combine the leadership of two important government departments. The president-elect, Jose Antonio Kast, has chosen businessman Daniel Mas to head both the Ministry of Mining and the Ministry of Economy. This move has sparked debate, as Mas does not have a background in mining. The mining sector is crucial to Chile's economy. It brings in a lot of money and is a major part of the country's exports. Chile is the world's top producer of copper and the second-largest producer of lithium. Many in the industry feel that having a dedicated minister is important for its success. The National Mining Society, SONAMI, has expressed disagreement with the decision. They believe the sector faces many challenges and needs focused leadership. Manuel Viera, president of the Chilean Mining Chamber, echoed this sentiment. He said the appointment shows a lack of priority given to mining, despite its importance to the nation's economy.This is not the first time Chile has combined ministerial roles. Former President Sebastian Pinera also paired the mining and energy ministries. However, the recent appointment has caused some surprise, as Santiago Montt, a mining executive, was expected to take the role. Montt's company, Los Andes Copper, even released a statement welcoming his imminent nomination. Some observers believe this may have led to a last-minute change. Arturo Squella, president of Kast's Republican Party, called the company's statement "imprudent. " Meanwhile, the copper industry faces challenges like declining ore grades and delays in investment due to complex permitting processes. The future of lithium investment and state-owned mining firms is also a topic of ongoing debate. Andres Gonzalez, an analyst at Plusmining, believes Mas will focus on speeding up project approvals. Despite his lack of direct mining experience, his business background and dual role may help improve investment conditions. The new government sees this as a critical area for growth.