SAFETY: Chile to launch new mining inspectorate

CHILE - In the wake of the accident that trapped 33 miners underground in the San Jose mine, perhaps until Christmas, Chilean mining minister Laurence Golborne announced a series of measures to overhaul the country's mining and geology services (Sernageomin). Chief among the measures will be the creation of a new mining inspectorate responsible for authorizing mine production and exploration plans and regulating safety within the industry.

"The plan is to revise the role of the state in regulating the industry, revising permits and the inspection process, including sanctions," the minister said.

An external advisory committee will be set up to undertake a in-depth revision of mining safety regulations. The team will consist of geologists, mine engineers, mine safety experts and lawyers tasked with presenting their proposals within 90 days. The creation of a mining inspectorate will be examined by the mining commission before it is debated in congress.

Meanwhile the government of president Sebastian Pinera has revamped a mine royalty proposal that was defeated in July. The new royalties will be 4-9% and rise to 5-9% by 2018. The money raised is intended to rebuild parts of Chile damaged by a massive earthquake in February 2010. The president's approval rating has shot upwards due to his handling of the situation at the San Jose mine, making this an opportune time to reintroduce the royalty bill.