Under current legislation, law 20,551 requires miners to tie-up significant financial resources in guarantee bonds, which impacts their credit capacity with financial institutions.
During the debate in the lower house, mining minister Baldo Prokurica said more than US$3 billion was held in guarantee bonds, which were effectively frozen resources, a figure which could rise to $8 billion in 2023 if the insurance policy alternative was not allowed.
The ability to buy insurance policies would allow miners to ensure their obligations to the state are covered at a fraction of the cost payable in monthly premiums, while releasing the funds they currently have tied-up in guarantee bonds.
