26 Mar The CNEP has identified the processing times for 11 types of mining investment projects
This analysis, commissioned by the Government of Chile to the National Commission for Evaluation and Productivity (CNEP), aimed to determine the processing times of various investment projects in the mining sector, serving as a baseline. It specifically focused on identifying the critical permits involved in the process, those with the potential to disrupt a project’s critical path. Today, the findings were delivered to the Minister of Finance, Mario Marcel.
Rodrigo Krell, the Executive Secretary of CNEP, emphasized that the analysis was grounded in quantitative evidence, providing insights into the actual processing times for each project type. This study serves as a benchmark for measuring and monitoring compliance, with the goal of reducing the approval times for mining sector projects by a third. This commitment was made within the framework of the recently approved Royalty law, with monitoring to be conducted by CNEP.
For example, meeting this goal could mean that a new basic metallic mining project, currently taking seven years for approval, would be completed in five years. However, the CNEP warns that specific characteristics of mining investment projects, such as mineral extraction capacity and the need for access to water or major hydraulic works, combined with a complex and dynamic regulatory burden, result in excessively long processing times.
Tuesday, march 26th. As part of the efforts to address these issues, the CNEP has been tasked with two key responsibilities: constructing a baseline that outlines the critical path of permits for mining investment projects and monitoring progress toward compliance. This comprehensive approach aims to provide a clear understanding of the factors contributing to lengthy processing times and identify improvement measures.
During the document’s formal delivery to the Chilean government, Rodrigo Krell detailed the scope of the work, which encompasses various project categories representing the mining industry and includes both metallic and non-metallic mineral exploitation projects. The analysis also considers project sizes and related infrastructure, such as ports and desalination plants.
Rodrigo Krell further explained the methodology used to identify critical permits and emphasized the importance of ongoing monitoring to evaluate the impact of measures to reduce processing times. He underscored that this systematic approach to regulatory reviews is essential for enhancing efficiency and promoting the development of the local economy.
In conclusion, the CNEP’s ongoing efforts represent a significant step forward in addressing the challenges faced by the mining sector in Chile. By providing comprehensive insights and recommendations, the CNEP aims to facilitate the approval process for mining projects while ensuring responsible and sustainable development.