22 July 2026
Chile’s lower house has approved President José Antonio Kast’s sweeping Law for National Reconstruction and Economic and Social Development, advancing the package to a joint congressional committee. Revising 36 laws, the legislation would reduce corporate tax rates from 27% to 23% by 2029, streamline permitting, and provide long-term fiscal stability guarantees. While these reforms are designed to strengthen Chile’s broader investment climate, they are especially significant for the mining sector, offering state-owned copper giant Codelco (Corporación Nacional del Cobre de Chile) a more supportive environment to modernise operations and preserve its position as the world’s leading copper producer.
The reforms arrive at a pivotal moment for Codelco. Faster permitting is expected to accelerate major structural projects, including the Chuquicamata Underground and El Teniente expansions, both of which are essential to offset declining ore grades at the company’s mature deposits. At the same time, lower tax rates and greater fiscal certainty enhance Chile’s attractiveness to international investors, reinforcing Codelco’s ability to secure joint-venture partners for capital-intensive projects, particularly its strategic expansion into lithium production.
The legislation also complements Codelco’s ambitious ESG strategy as it seeks to position itself as a premier supplier of “green copper” for the global energy transition. The company aims to source over 85% of its electricity from renewable energy by 2026 and achieve a fully renewable power matrix by 2030 while reducing greenhouse gas emissions by 70%. It is also addressing water scarcity through a 60% reduction in inland water consumption, supported by expanded water recirculation and a US$1 billion desalination plant serving its Northern District. Across its operations, Codelco maintains The Copper Mark certification and operates Chile’s largest fleet of electric mining vehicles.
Although, as a state-owned enterprise, Codelco’s profits flow directly to the national Treasury rather than benefiting from corporate tax cuts, the reforms nonetheless strengthen its long-term outlook. By combining faster project approvals, greater investment certainty, and a robust sustainability profile, the package reinforces Codelco’s role as a cornerstone of Chile’s mining industry and a critical supplier to the global green economy.