Over 300 Municipalities in Chile Start Receiving Funds from Mining Royalty, Opposed by Republican Party

Original article: Más de 300 comunas de Chile empezaron a recibir los recursos del Royalty Minero, ley que el Partido Republicano votó en contra On Wednesday, April 15, 309 municipalities across Chile began receiving funds totaling CLP 56,633 million from the Mining Royalty, which is designed to bolster municipal financing, enhancing investment capacity and autonomy for local governments. This marks the first of four annual disbursements. According to the Undersecretariat for Regional and Administrative Development (Subdere), the first installment of CLP 56,633 million consists of CLP 13,729 million allocated to the Mining Communities Fund (FCMI) for 45 municipalities, while CLP 42,904 million comes from the Territorial Equity Fund (FET) impacting 302 municipalities.

The municipalities receiving resources from the Mining Communities Fund are determined based on a report from the Chilean Copper Commission, which uses two criteria: being located in a mining region and having active mining operations subject to the specific mining tax. Republican Party Opposed the Bill The Mining Royalty was an initiative championed and approved during the previous administration of President Gabriel Boric, designed as a tax on large mining companies to distribute $450 million annually to regions and municipalities across the country. During its legislative process, the bill garnered broad cross-party support, with the sole exception of the Republican Party, which consistently opposed its approval, which ultimately took place in May 2023.

“Had it been up to the Republicans, we would not have a Mining Royalty,” noted Esteban Velásquez, a senator from the Social Regionalist Green Federation and a proponent of the initiative, as the funds began to be distributed among Chilean municipalities. Furthermore, upon its approval in the Chamber, then-deputy Mercedes Bulnes expressed regret that the Republican Party did not support the bill, which could have received unanimous backing in Congress. “I regret that the Republican Party, which proudly proclaims the word homeland, lacked the patriotism to collaborate with their vote for unanimous approval of this bill benefiting the municipalities that produce wealth for the country, the regions, and especially the poorest municipalities,” asserted Deputy Bulnes.