Mining would contribute to the treasury with about half of the resources than two years ago
It is estimated that the contribution this year of the sector to the State would be around US$ 4,500 million, figure 45% lower than the collected in 2012.
With less trading of minerals, mainly copper, mining would contribute to the Treasury with about half of the resources than two years ago.
The Research Manager from the National Mining Society (Sonami), Alvaro Merino, estimated that the decline in the value of mineral prices could mean that this year the sector’s contribution to the treasury was $ 4,500 million, which is 45% lower than the collected in 2012, year in which it reached US $ 8,200 million.
The contribution of mining to fiscal financing includes both Codelco surplus as taxation of private mining. In 2013, the contribution was US $ 5,800 million, which represents a decrease of 29% compared to 2012, or, $ 2,400 million less for the State of Chile, according to the Sonami’s data.
Decrease
Copper fell 8.27% its average value during the first half of 2014 compared to the same period of 2013, while gold fell 15.2%, silver 24.8% and iron 18.6%. This, combined with higher costs and, therefore, lower margins, influences in a sharp drop of the contribution of mining to the Treasury, said Merino.
Although during the first half of 2013 the total tax revenue reached $ 30,000 million, $ 2.649 million was provided by mining. Thus, the activity contributed 8.8% of fiscal funding.
In the same period of 2014, total revenues were US $ 26,900 million, of which, US $ 2,119 million were contributed by mining, which is equivalent to 7.9% of state funding. “it is seen that decreased $ 530 million, this is a minor 20% contribution,” says the Sonami’s Studies Manager.
Merino adds that the depreciation of the peso will help mitigate the lowest value of mining products and relieve the fall in margins. “It will require fewer dollars to pay costs in local currency,” he said.
Source: Emol
