Common sense has prevailed here. The Chilean people have spoken....

Common sense has prevailed here. The Chilean people have spoken. People don’t mind change but radical/excessive change always causes concern amongst the majority. The nationalisation component of the constitution was essentially taking away a lot of the current control/ownership of ‘property’ from private enterprise and giving it all back to the government (a dangerous proposition).

The final draft constitution proposal included things such as removing rights to own water as ‘property’ and instead be owned by centralised control (government department/s). The concern here was that future access to water may be limited and also what happens to exisiting water rights already paid for. Other components included ambiguity regarding environmental provisions and approval of future mining projects.

It should be noted that the proposed uplift in royalty/taxes on mining companies is still to be debated post constitution disapproval. The positive here is that politicians are self interested, meaning that they are likely to drop the royalty regime all together or it will increase marginally at best, they do want to keep their jobs after all and therefore would be suicidal to go against the people (I.e the majority). I have a few mining investments tied up in Chile (HCH, LPI and MAN) so a positive result, the Chilean market also reacted positively which is to be expected. Certainty allows for investments to be made over the long term. Hopefully we can secure the copper project in Chile on our terms in the next few weeks, cheers CP.