By Minener Editorial Team | June 9, 2025
The Mining Royalty Law, approved in 2023, will channel nearly $220 billion pesos across Chile in 2025. Coquimbo’s communes are set to benefit significantly, with historic increases in local budgets.
In 2025, Chile’s Mining Royalty Law—enacted by the National Congress in May 2023—is expected to deliver over 17 billion Chilean pesos to the communes of the Coquimbo Region. The announcement was made during a regional tour by Minister of Mining, Aurora Williams, which also included key updates on operations at Minas El Romeral.
“Together we built a solution that is proving to be highly effective,” stated Minister Williams, highlighting the impact of the policy on regional equity and municipal finances. She added, “We inherited a complex situation, but today we’re delivering on promises once seen as unattainable.”
The Mining Royalty Law imposes a tax on large-scale mining companies, reallocating US$450 million annually to Chile’s regions and municipalities. It marks one of the most significant new funding mechanisms for local governments since the return of democracy in 1990.
The law establishes three key financial mechanisms:
- Regional Fund for Productivity and Development
- Territorial Equity Support Fund
- Mining Communes Fund
“Many feared this law would cripple Chilean mining and scare off investors. But that hasn’t happened,” noted Williams. “This success comes from collective effort—government, lawmakers, and industry working together.”
Impact on Coquimbo Communes
Of the 15 communes in the Coquimbo Region receiving funds:
- 13 will benefit from the Territorial Equity Fund
- 11 will receive transfers from the Mining Communes Fund
Andacollo will see the largest increase in its municipal budget—43% more compared to its own revenues. Meanwhile, Monte Patria will experience a 484% budget increase after joining the Mining Communes Fund in 2025. Ovalle follows with a 249% rise.
National Overview
In 2024, transitional royalty funds totaling $93.6 billion pesos were distributed among 307 municipalities. For 2025, the total allocation will nearly double to $220 billion pesos, benefiting 308 municipalities—or 89% of Chile’s local governments—and more than 12 million people.
The implementation of the law is widely regarded as a milestone in Chile’s push for more equitable regional development, especially in historically mining-dependent areas.