Chile Increases Tax Rate on Copper

Chile is about to apply a higher tax rate on incremental marginal copper production.

When applying these marginal tax rate, we are looking at a 50% tax on $8/lb copper.

This will be very bad for development projects in Chile. Nobody will want to start up a mine with these taxes. As these taxes are on the revenue side, this will outprice high cost producers from the low cost producers. High cost producers won't be able to survive, while low cost producers (like Capstone Mining) will thrive.