Brazil & Southern Cone - February 2026

In theory, Chile’s miners should be a happy bunch. A business-friendly right-wing president-elect, José Antonio Kast, is to take office in March; prices for major Chilean export items – copper and lithium – have soared; and interest rates are projected to fall in coming months. And yet mining industry leaders, who are hoping the incoming government will help unleash a project pipeline worth over US$100bn, are wary they may be left out in the cold. Not only did President-elect Kast step back from his expected decision to appoint a top mining executive with years of industry experience as mining minister, but he also did away with the cabinet post altogether and merged it with that of economy minister.

Kast had been widely expected to appoint Santiago Montt, the CEO of Los Andes Copper and a former executive at mining giant BHP, to the role of mining minister. Instead, Kast announced on 20 January that Daniel Mas, a businessman and trained agronomist with no background in mining, would serve as the minister for both mining and the economy.

Chile’s national mining industry lobby group (Sonami) responded in a statement that it did not agree with the decision to merge the mining portfolio with the economy ministry, given the number of urgent issues at hand. The head of the Chilean mining chamber, Manuel Viera, was more emphatic. “This was an opportunity to appoint a professional linked to mining to lead the portfolio,” Viera said. “Today mining, despite being our national emblem and the activity that contributes the most resources to the public purse, is treated as second rate.”

The industry’s concerns include excessive red tape needed to obtain new permits, a host of environmental lawsuits, and uncertainty over the regulatory environment. To help overcome the challenges, miners want Kast to streamline environmental regulations, improve mining-specific infrastructure, and create stable, long-term tax incentives for large-scale investments similar to the Rigi programme introduced by President Javier Milei in Argentina.

During a visit to the Dominican Republic in late January, however, Kast seemed to suggest he was not inclined to water down environmental regulations. “Chile has gone through different stages in mining development, and the most important thing here is to ensure people’s quality of life. Our fight is against poverty, to improve people’s quality of life while always respecting the environment,” Kast said in response to questions regarding possible Chilean mining assistance for the Dominican Republic. “This dispute has taken place in Chile, and we always emphasise that this is done while respecting the environment and the dignity of people.”

Miners also want the new administration to establish the diplomatic conditions to allow for mining projects and infrastructure to expand across borders. Currently there are a number of mines that straddle the Andean border with Argentina and which would gain considerable productivity if they could be merged through a joint-venture or an operational alliance.

Still, mining experts have told Chilean media outlets that they expect Mas to advance some of the industry’s demands, such as the deployment of new infrastructure and the deregulation of permits so that new investment projects can get underway.

New priorities

According to incoming Finance Minister Jorge Quiroz, the Kast administration’s priorities will be to simplify regulations, lower the tax burden, and implement a series of spending cuts. Quiroz said spending cuts of US$6bn would take up to 24 months, not the 18 months that were projected during last year’s election campaign. The corporate tax rate would fall by one percentage point from currently 27% over the government’s four-year term, Quiroz said. On the prospects for the mining industry, the long-time business consultant and Kast advisor was particularly upbeat. “We can increase production in the next 12 to 24 months by at least 10%.”