Freeport's Chile President Highlights Permit Delays as a Significant Issue

SANTIAGO - Mario Larenas, the senior executive of Freeport-McMoRan (NYSE:FCX) in Chile, expressed significant concerns regarding the long delays in implementing reforms aimed at expediting mining permits in Chile, one of the world's leading copper-producing countries. Chile, the second-largest lithium producer globally, faces challenges in its mining sector due to regulatory bottlenecks that slow down project developments.

Speaking at a seminar organized by EY and Cesco in Santiago, Larenas emphasized the seriousness of the situation in the permitting process, stating it is a "serious" issue for the mining sector. He noted that proposed legal reforms aimed at expediting the permitting process and modifying environmental assessments are still under consideration by lawmakers.

While Larenas indicated that the legislation is progressing in the right direction and is "improvable," he highlighted that the delays in the legislative process are concerning. He pointed out that the initial expectation was for the reforms to be ready by the end of the year, but this goal now seems unattainable.

Freeport-McMoRan, a significant producer of base metals such as gold, copper, and molybdenum, operates projects in various countries, including the United States, Peru, Chile, and Indonesia. The company plans to invest $7.5 billion to expand the El Abra open-pit copper mine in Chile by 2025. This expansion is contingent upon obtaining environmental permits. Additionally, Chile's state-owned copper company, Codelco, is a minority partner in the El Abra project.