Chile's new tax regime, to deal with rebuilding after the massive earthquake in 2010, is being accepted by most major mining firms operating in the nation.
The companies are to pay 4 to 9 % extra tax for mining minerals and metals in 2014. The tax will cover copper and gold two of the main exports from the nation.
The new tax raise will help the government to raise an extra $1 billion in royalties which will then be used for rebuilding work in dozens of cities. The devastating earthquake and tsunami in Chile last year left a number of town and coastal fishing villages in ruins.
The new royalty payments are being accepted by mining firms despite being voluntary. The 2005 royalty law in Chile has a clause that bars changes in the tax before 2017. However many of the companies have agrees to pay the increased tax. As per ministry figures companies that provide 94% of the annual production have already agreed to the new tax hike.
BHP Billiton of England and Australia, Chile's Antofagasta Minerals SA, and England's Anglo American PLC are the three largest mining companies in Chile and will pay more than half the new revenue as per Finance Minister Felipe Larrain.