Framework Bill on Sectoral Authorizations and Impact on Mining

The Framework Bill on Sectoral Authorizations has passed constitutional review without any modifications and is now ready for promulgation and publication. This initiative seeks to establish a more efficient and predictable regulatory framework, aiming to reduce the processing times for approximately 380 sectoral permits by between 30% and 70%. The Bill contains both general and specific provisions that could benefit the development of mining projects:

Main General Provisions:

• Reduction of processing times: Maximum timelines are established, depending on the category of each permit.
• Parallel processing: Sectoral agencies may not require prior authorizations to file an application, unless expressly required by  law. The objective is to avoid sequential permitting.
• Alternative Enabling Mechanisms: The Bill introduces the possibility of using affidavits and notices as an alternative to low-risk prior authorizations, subject to subsequent inspection and sanctions.
• New Office of Sectoral Authorizations: Reporting to the Ministry of Economy, this office will seek to promote efficiency in permit processing.
• Voluntary regulatory stability regime: Available for projects with a favorable Environmental Qualification Resolution.

Specific Measures Impacting the Mining Industry:

In addition to the streamlining of permits applicable across various industries—such as sanitary authorizations for private sewage and drinking water systems—the following specific changes for the mining sector stand out:

1. An explicit cap is set on the National Geology and Mining Service’s (Sernageomin) sanctioning authority regarding violations within its jurisdiction (100 UTA).
2. Closure plan approval will be considered a sectoral permit, and the alternative mechanism of affidavit will be available. Furthermore, when granting such permits, the authority will be limited to verifying technical and administrative aspects not assessed environmentally, clearly separating certain environmental matters previously overlapped with the Environmental Assessment System process.
3.  Tailings deposits, tailings pipelines, concentrate pipelines, and mining pipelines are exempted from requiring approval from the Chilean l Water Authority (DGA) for their construction, without prejudice to Sernageomin’s powers under Article 2 of Decree Law No. 3,525/1980.