The incoming government of Chilean President-elect José Antonio Kast, who takes office in March, is expected to quickly approve permits and funding for a $175 million rare-earth mining
project in Chile’s Biobío region
Ramon Barua, CEO of Toronto-based Aclara Resources, told Bloomberg News in an interview published Jan. 12. The firm expects to open its Chile facility in 2028, adding to a portfolio of rare-earth mining and processing facilities in Brazil and the United States.
How feasibly can major mining projects in Chile be fast-tracked under Kast’s administration? How does Chile’s regulatory and investment climate compare to other rare-earth mineral producers in the Western Hemisphere, namely Canada and Brazil? What is the geopolitical significance of developing rare-earth and other critical mineral value chains in the Americas?
Juan Carlos Guajardo, founder and executive director of Plusmining in Santiago:
Chile’s ability to fast-track major mining projects under a pro-investment administration is likely to improve, but the effects will materialize at different speeds.
In the short term, a shift in political priorities can have an immediate impact. An incoming government focused on growth is expected to apply a pro-investment policy shock during its first 90 days, aimed at unblocking projects stalled in administrative bottlenecks, which could quickly release a few initiatives.
Structural regulatory improvements will take longer. Chile faces a two-layered challenge. First, an ideologically driven skepticism toward private investment has weighed on confidence in recent years and is likely to recede. Second, the permitting system has evolved into a dense and fragmented web of procedures, overlapping authorities and legal uncertainty. Addressing this requires a re-engineering of the permitting framework, which is a medium- to long-term task.
Despite its vast geological potential, Chile has experienced a slowdown in the generation of new greenfield mining projects. Rebuilding a robust pipeline will take time, even under more favorable policies.
Nevertheless, Chile’s existing mining base remains exceptionally large. According to Plusmining estimates, total mining investment expected across Latin America amounts to roughly $200 billion in initial capital expenditures over the coming years, with Chile accounting for more than half of the regional total, driven overwhelmingly by copper.
Nearly 80 percent of Chile’s copper-related capex is concentrated in brownfield expansions, operational upgrades and mine-life extensions. As a result, Chile’s contribution to global mineral supply will remain critical, shaped less by new project approvals than by the scale, complexity and technological intensity of reinvesting in an aging but indispensable mining system.
Andrés Beluzán Erazo, Chile-based mining engineer:
When evaluating the feasibility of fast-tracking major mining projects under José Antonio Kast’s incoming administration, which takes office on March 11, it is essential to focus on practical realities rather than ideological expectations.
Chile’s mining framework has shown remarkable continuity across administrations—from Piñera to Bachelet to Boric—without fundamental shifts in economic policy or core investment rules. Kast’s pro-business stance, including promises of deregulation and reduced bureaucracy, could facilitate administrative efficiencies, but acceleration will hinge on streamlining existing technical and environmental processes within established institutions, not on abrupt overhauls.
Congressional dynamics—given that his party does not hold an absolute majority—and judicial and environmental safeguards will continue to impose checks and balances.
In rare-earth elements, Chile remains an emerging player, with projects such as Aclara Resources’ Penco Module in Biobío currently at permitting stages. Compared to Canada, which offers advanced permitting predictability and established supply chains, and Brazil, which has more mature production but regulatory volatility, Chile benefits from superior legal stability, deep mining expertise and skilled human capital. Its main challenge lies in lengthy and complex
environmental approvals.
Enhancing regulatory predictability—while upholding high environmental standards and low- impact technologies—will be key to competitiveness.
Geopolitically, building rare-earth and critical mineral value chains in the Americas holds strategic value. Regional integration would reduce external dependencies, particularly on dominant suppliers, strengthen supply-chain security and foster a framework that leverages resources, technology and robust governance for mutual benefit across North and South America.
Beatrice Rangel, managing director of AMLA Consulting in Miami Beach:
While I do think Kast will conduct a thorough review of the regulatory framework, I find it difficult to believe that changes will be implemented hastily, as Chile is a business-friendly society and its citizens place great value on the rule of law.
I believe it is about time for Latin American nations to rethink many of their laws and regulations to better capitalize on growth opportunities created by technological change. Rare earths are to modern technologies what copper was to electricity in the 19th century.
However, the exploitation of rare earths can harm agriculture while placing pressure on the power matrix. I doubt Chile will engage in mass production of rare earths without carefully weighing these drawbacks.
From a geopolitical standpoint, rare earths can create multiple linkages with the U.S. economy, which could help bolster development.
Source: The Dialogue