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Chile closure insurance guarantee bill advances

A bill to modify Chile’s mining closure law and allow miners to buy closure insurance was approved by the lower house, the Chamber of Deputies, and will advance to the senate.
Chile closure insurance guarantee bill advances Chile closure insurance guarantee bill advances Chile closure insurance guarantee bill advances Chile closure insurance guarantee bill advances Chile closure insurance guarantee bill advances

Chile's mining minister Baldo Prokurica

Under current legislation, law 20,551 requires miners to tie-up significant financial resources in guarantee bonds, which impacts their credit capacity with financial institutions.

During the debate in the lower house, mining minister Baldo Prokurica said more than US$3 billion was held in guarantee bonds, which were effectively frozen resources, a figure which could rise to $8 billion in 2023 if the insurance policy alternative was not allowed.

The ability to buy insurance policies would allow miners to ensure their obligations to the state are covered at a fraction of the cost payable in monthly premiums, while releasing the funds they currently have tied-up in guarantee bonds.