Chile President-Elect Kast Merges Mining Ministry with Economy Portfolio, Raising Industry Concerns
Chile’s Incoming Government Merges Mining and Economy Portfolios, Drawing Industry Criticism
Chile’s president-elect, José Antonio Kast, has unsettled the mining industry by deciding to merge the mining portfolio with the economy ministry, reversing earlier indications that his incoming government would appoint a standalone mining minister.
At a delayed cabinet announcement in Santiago on Tuesday evening, Kast named Daniel Man as Minister of Economy and Mining, a last-minute decision that pushed the ceremony nearly an hour behind schedule.
The move overturned plans to appoint Patricio Montt, a former BHP Group executive and current CEO of Los Andes Copper, as mining minister.
Sources close to the incoming administration said the decision was influenced in part by Los Andes Copper’s disclosure to the market that Montt would leave the company to join the new government before the cabinet was formally announced.
The initial news sparked a sharp rally in Los Andes Copper shares, which rose 21.79% in after-hours trading on Tuesday. By Wednesday, however, those gains had reversed as investors reassessed the cabinet change. Shares were down 16.07% by midday and later traded 7.7% lower at C$15.74, valuing the company at approximately C$473 million (US$341 million).
Industry backlash
Criticism has centred both on Man’s background as an agronomist with limited mining experience and on the symbolism of downgrading a ministry long regarded as strategic to Chile’s economy.
For a country where mining underpins economic growth and fiscal revenues, industry analysts and trade groups said the appointment of a dual minister signals that the sector may not be a priority for the incoming administration.
The Chilean Mining Chamber said the government missed an opportunity to appoint a seasoned industry professional to lead what it described as the country’s most important economic sector.
“This was an opportunity to appoint a professional linked to mining to lead the portfolio,” said chamber president Manuel Viera. “Today, mining — despite being our national emblem and the activity that contributes the most resources to the public purse — is being treated as second-rate.”
Other industry associations warned that merging the ministries weakens leadership at a time when Chile faces intensifying global competition for mining investment.
José Cabello, director of Mineralium Consulting Group, said the decision raises concerns about the government’s understanding of mining’s economic importance and risks diluting oversight of Chile’s largest industrial activity.
Similarly, Juan Ignacio Guzmán, head of consulting firm GEM, said the dual mandate would limit the minister’s ability to focus on mining.
“The minister not only lacks knowledge of the mining sector, but by prioritising the economy portfolio, he will have limited time to understand and manage mining effectively,” Guzmán said.
Investment and policy challenges
The incoming minister now faces the task of unlocking an estimated $105 billion backlog of mining investments, while revisiting proposed reforms to permitting and environmental approval frameworks that companies say have slowed project approvals.
Montt had been widely viewed as well positioned to address permitting bottlenecks and support efforts to accelerate project development and revive copper output.
Chile holds the world’s largest copper and lithium reserves, minerals critical to the global energy transition, and supports more than 8,000 mining supplier companies.
The country accounts for roughly a quarter of global copper production, though producers face declining ore grades and increasing regulatory pressure.
Before joining Los Andes Copper three years ago, Montt spent more than a decade overseeing corporate affairs at BHP Minerals Americas.
The company said he will remain in his role until 19 February, with Antony Amberg serving as interim CEO. It remains unclear whether he will return to the position.
Kast, who campaigned on promises to tighten immigration controls and combat crime, is scheduled to be sworn in on 11 March.
SOURCE:mining.com
