Chile's miners flag risks in dual oversight of mining, economy ministries

Kast on Tuesday appointed businessman Daniel Mas to lead the Ministry of Mining and the Ministry of Economy, Development and Tourism. Mas is vice president of the powerful Confederation of Production and Commerce and brings private-sector experience in construction, real estate and financial services, but lacks a mining background.

The mining sector is the backbone of Chile's economy and a major driver of fiscal revenue and exports.

Kast had been expected to appoint Santiago Montt, the CEO of Los Andes Copper and a former senior executive at global miner BHP, to the mining post.

Mining groups in Chile, the world's largest copper producer and second-largest lithium producer, questioned the decision to combine the two ministries' leadership.

Chile's National Mining Society, known as SONAMI, said it "did not agree" with the move given the scale of the sector's unresolved challenges, though it expressed hope the incoming administration would ensure effective management of the portfolio.

Manuel Viera, president of the Chilean Mining Chamber, said the appointment signaled a lack of prioritisation.

"This was an opportunity to appoint a professional linked to mining to lead the portfolio," Viera said. "Today mining, despite being our national emblem and the activity that contributes the most resources to the public purse, is treated as second‑rate."

Previous administrations have combined ministerial roles, including under former President Sebastian Pinera, who paired the mining and energy posts.

The surprise appointment of Mas followed a statement by Los Andes Copper earlier on Tuesday welcoming what it said was Montt's imminent nomination, a move observers said may have triggered a last‑minute change.

Arturo Squella, president of Kast's Republican Party, told a local radio station that the company's statement was "imprudent" and likely influenced events.

Chile's copper industry faces declining ore grades and investment delays driven by a complex permitting process, while debate continues over private investment in lithium and the future of state‑owned mining firms.

Andres Gonzalez, an analyst at consultancy Plusmining, said Mas was likely to focus on accelerating permits and improving investment conditions.

"Mas has no direct mining experience," Gonzalez said. "But given his business background and his dual role, his priority will likely be speeding up project approvals, which the new government sees as critical."