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    Kast’s Chile mining ministry merge: project pipeline risks explained for engineers

    January 21, 2026|

    Reviewed by Joe Ashwell

    Kast’s Chile mining ministry merge: project pipeline risks explained for engineers

    First reported on MINING.com

    30 Second Briefing

    Chile’s president-elect José Antonio Kast has scrapped a standalone mining ministry, folding it into the economy portfolio and appointing agronomist Daniel Man as dual Minister of Economy and Mining, reversing plans to name ex‑BHP and Los Andes Copper CEO Patricio Montt. Los Andes Copper (CVE: LA) shares initially jumped 21.79% in after-hours trading on the TSX before sliding 16.07% the next day, leaving the stock 7.7% down at $15.74 and valuing the company at about C$473 million. Industry groups warn the dual mandate risks sidelining Chile’s largest industrial activity just as the new minister must unblock an estimated $105 billion in delayed mining investments and permitting reforms.

    Technical Brief

    • Kast’s cabinet ceremony in Santiago was delayed nearly one hour while the mining portfolio decision changed.
    • Daniel Man, an agronomist by training, now holds the merged Economy and Mining brief.
    • Patricio Montt’s planned appointment was derailed after Los Andes Copper publicly disclosed his expected ministerial role.
    • The Chilean Mining Chamber stressed mining is the country’s top contributor to state revenues and global image.
    • Manuel Viera criticised the move as treating mining as “second‑rate” despite its fiscal dominance.
    • Consultant José Cabello warned the merger dilutes leadership of Chile’s largest industrial activity by value.

    Our Take

    Chile-focused copper and lithium policy pieces make up a noticeable share of the 90 Policy stories in our database, signalling that regulatory stability there is now a primary risk factor investors track alongside grade and cost curves for assets like those held by Los Andes Copper and Codelco.

    The sharp intraday swings in Los Andes Copper’s Toronto-listed shares, despite a mid-cap valuation of about US$341 million, underline how Chilean policy headlines can disproportionately move single-asset or pre-production copper plays compared with diversified majors such as BHP Group.

    With China also flagged in this piece and the Guangzhou Futures Exchange active in copper and lithium-linked contracts in our coverage, Chilean ministry restructuring could feed more directly into pricing expectations on Chinese exchanges than into Western benchmarks, affecting hedging strategies for Chile-based producers.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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