The Undersecretariat of Regional Development (SUBDERE) presented a report to the Senate’s Mining and Energy Commission detailing the impact and distribution of resources derived from the Mining Royalty during the first six months of implementation in the O’Higgins region and throughout the country.
This report has been key to ensuring transparency in the administration of funds allocated to mining communities and the most vulnerable in the region. Senator Juan Luis Castro, president of the Senate’s Mining Commission and representative of the O’Higgins region, stressed the importance of this step to ensure clarity and proper use of resources.
“Today, the Undersecretary of Regional Development delivered a detailed report on the first six months of the implementation of the Mining Royalty in our region and in each of its communes. It is essential that everything is clear and transparent for the citizens, and to this end, precise information has been provided. It should be noted that this report does not include the Regional Governments, which receive their resources through another mechanism,” he said.
He stressed that the important thing is that this measure ensures transparency and clarity in the route of these funds. “We know exactly where the resources are going in each municipality and in every corner of the O’Higgins region. We will not give up on the fulfillment of this crucial objective, which allows the State to receive what corresponds to the exploitation of our minerals,” explained Senator Castro.
Implementation of the Mining Royalty Law
The Mining Royalty Law (No. 21,591), enacted this year, has created two new funds with the aim of supporting the most vulnerable communities and compensating mining communities for the externalities of extractive activity. These funds are:
Territorial Equity Support Fund (FET): Designed to reduce the gaps in the municipalities with the least income, distributing more than 70.755 billion pesos to 300 municipalities nationwide, benefiting more than 10 million people. In the O’Higgins region, 32 municipalities have benefited, receiving a total of 5.627 billion pesos.
Compensation Fund for Mining Communities (FCMI): This fund seeks to compensate for the externalities of mining, providing 22.891 billion pesos to 43 mining communes in the country. In the O’Higgins region, six communes have received a total of 3.320 billion pesos.
In total, the O’Higgins region has received more than 8.948 million pesos from both funds, which represents a significant injection of resources for local development and the improvement of the quality of life of its inhabitants.
Transparency and use of resources
The SUBDERE report also indicates that the majority of the benefited communities have complied with the reporting of the use of these funds, although the need has been identified to improve the reporting mechanisms to facilitate the monitoring of the use of resources. Along these lines, Senator Castro stressed that this level of transparency is vital to ensure that the funds reach the places that need them most. “It is key that, with this measure, we can ensure that the resources are used efficiently, and that each peso is translated into real improvements for the communities in our region.”
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