The SBAP Law and legal certainty: Chile's challenge in the face of regional advances

The recent alert raised by Sonami (Chile's National Mining Society) regarding Law 21.600 (SBAP) highlights a critical bottleneck for the national mining industry: the lack of legal certainty. As long as the law's implementing regulations remain ambiguous, Chile risks turning environmental protection into an operational 'lock' that blocks the development of strategic resources.

The lithium paradox

The current approach doesn't just limit lithium extraction to a state-run model; it also jeopardizes the viability of projects for minerals like potassium and boron. The technical solution exists — brine reinjection technologies to ensure sustainability — but it requires a regulatory framework that rewards efficiency instead of ideological prohibition.

The Argentine mirror

The contrast with Argentina is stark. With clear rules for exploration and the granting of Special Lithium Operating Contracts (CEOL), our neighbors are capturing investment that once looked to Chile. They now have a portfolio of more than 60 projects, proving that legal certainty is the primary driver of competitiveness.

Our strategic view

At Dupouy & Méndez we advise mining-sector companies in navigating these complex regulatory frameworks. We understand that sustainability and economic development aren't mutually exclusive, provided there's proactive management of the permitting process and a solid legal strategy to address the uncertainty of the SBAP system.