El Teniente is the world’s biggest underground copper mine and the sixth largest by reserve size. (
Image courtesy of Codelco.)
In South America’s copper-rich Andes, political risk is rising as high poverty and debt levels amid the covid-19 pandemic drive potentially sharp policy shifts and put mining wealth into the crosshairs of angry citizens and political leaders.
In No. 1 copper producer Chile, an overhaul of its market-orientated constitution is underway, and it is debating whether to hike royalties on miners. Peru, the No. 2 producer, is heading for a polarized June presidential election with a little-known socialist leading in the polls who wants to redistribute mining wealth.
Analysis: In world s top copper region political risk rises reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
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SANTIAGO (Reuters) - Chile will pen a new constitution to replace its magna carta from the era of dictator Augusto Pinochet, which is credited with underpinning decades of growth, but also stoking inequality.
People gather to protest against Chile s government and react to the results of a referendum on a new Chilean constitution in Santiago, Chile, October 25, 2020. REUTERS/Ivan Alvarado
The Andean country, the world’s top producer of copper, will vote this weekend for 155 delegates who will steer the historic redraft of the text that dates back to 1980.
WHY A NEW CONSTITUTION?
Chile is among the wealthiest, most stable democracies in Latin America. But distrust of the political class, combined with festering inequality, have left many feeling short-changed. Chileans voted overwhelmingly to rewrite their constitution in an October 2020 referendum.
Copper bonanza challenge for top producer Chile
As the global economy starts to shake off the impacts of the Covid-19 epidemic and makers of electric cars and renewable energy systems clamour for copper, Chile stands to gain handsomely. But political uncertainties in the South American nation have some worried.
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In this file photo taken on February 25, 2021 A view shows copper sheets at Kola Mining and Metallurgical Company (Kola MMC), a unit of Russia s metals and mining company Nornickel, in the town of Monchegorsk in the Murmansk region. | KIRILL KUDRYAVTSEV / AFP
Even as copper prices hit a ten-year high this week, political events in Chile the world s main producer have raised questions about whether the country will be able to continue meeting rising demand.