SANTIAGO - Chilean mining firms believe there is room to raise taxes in the world's top copper producing nation, but caution that any hikes should strike a balance to avoid scaring away investments, El Mercurio newspaper reported on Saturday., the head of industry group Sonami was quoted as saying in an interview with the newspaper.Mining companies in Chile pay taxes that total between 40 and 44%, he said, and any tax hikes should not exceed an overall tax burden of 50%.
Hernandez's remarks follow a statement last week by global miner BHP, which operates in Chile the world's largest copper mine, known as Escondida. BHP said it would reconsider any future investments in the country if taxes are raised. The company has said it is willing to invest $10-billion more in Chile over the years, but only if the regulatory and fiscal conditions are appropriate."Indexing a tax to the value of copper is going to create a lot of distortions in the medium term," Hernandez said.