From the ground to the rulebook: mining’s new regulatory era

[Ben Graham]

In 21st-century mining, a country’s competitiveness depends not only on what lies beneath the ground but also on what happens in the offices of regulators. This shows how Chile, Australia, Peru, China, and the United States are following different regulatory paths, and how these decisions are defining where the next wave of mining investment will flow.

Chile: Higher taxes, but more certainty

The 2023 royalty reform raised government revenues through a new ad-valorem rate plus a margin-based tax but also introduced ceilings on total tax burden (46.5% for the largest producers). This combination increases state income while assuring investors that taxation will not rise indefinitely. In parallel, the new 2025 Sectoral Permits Law promises to cut approval times by 30 to 70%, which could increase project Net Present Value (NPV) by 15%.

Australia: ESG leadership at a cost

At the state level, Queensland’s 2022 coal royalty hike pushed top marginal rates to 40%, boosting fiscal revenues but discouraging new coal investment. Federally, the Nature Positive Plan proposes a national Environmental Protection Agency and stricter biodiversity zoning, raising standards and potentially lengthening approval processes. The Safeguard Mechanism reform of 2023 now obliges mines emitting more than 100,000 tonnes of CO₂ to reduce intensity each year or buy credits, effectively placing a carbon cost on operations. These measures align Australia with global ESG expectations, consolidating its image as a secure and responsible supplier, but at the price of higher costs and longer lead times.

Peru: Digital efficiency

Instead of new fiscal burdens, Peru chose the path of administrative efficiency. In 2024, authorities announced 21 measures: a five-day admissibility review for EIAs, integrated processing of water and environmental permits, early prior consultation with Indigenous communities, and faster mine closure plan approvals. These were coupled with the launch of a digital platform, enabling companies to track and submit permits online. Additionally, these reforms gave artisanal miners more time to formalize, reducing informality but prolonging environmental risks. The combined effect is a more predictable and efficient system that supports exploration and development, while keeping environmental safeguards intact.

China: Strategic lithium

With the revision of the 2024 Mineral Resources Law, which comes into force in 2025, China declared lithium a strategic mineral. This raised environmental requirements, set a minimum content of 0.4% Li₂O for a deposit to qualify as lithium ore, and centralized approval of mining rights in the Ministry of Natural Resources. China also consolidated its rare earth sector into state-controlled groups and extended export controls on gallium, germanium, and graphite. These measures raise entry barriers, enforce higher environmental standards, and reinforce state dominance in global battery and clean-energy supply chains.

United States: Speed as weapon

In 2025, an Executive Order reshaped mining regulation under the logic of national security. By invoking the Defense Production Act and expanding FAST-41 coordination, critical mineral projects can now receive permits in as little as 28 days. The administration also promoted seabed mining and mine-waste recovery, extending extraction into non-traditional domains. These steps radically improve NPVs and timelines for designated projects, but the compression of review periods raises risks of litigation and environmental pushback, potentially undermining long-term certainty.

Regulation, it seems, has become the new mining resource. Today, the value of a project is not only extracted from the ground — it is also regulated. While Chile and Peru move toward efficiency and certainty, Australia and the U.S. diverge between tighter environmental control or greater speed, and China strengthens its sovereignty over strategic minerals. The lesson is clear: in modern mining, geology opens the door, but regulation decides who walks in.

Summary of Regulatory Changes

Country	Major Regulatory Changes (2022–2025)	Objective	Current Status	Expected Mining Impact
Chile	Permits reform (2025), new royalty (2023), concessions adjustments, national lithium policy	Streamline processes; ensure environmental standards; state involvement	Enacted	Faster approval, higher certainty, balanced fiscal and governance model
Australia	Nature Positive Plan (federal ESG standards, EPA), climate safeguard reforms, boosted coal royalties (2022)	Enhance environmental/societal oversight	Mixed (EPA pending)	Higher costs and scrutiny; positioning minerals as ESG-oriented, but with delay risk
Peru	21 measures to accelerate permits related to environmental impact, water permits and closure plans; early consultation; digital one-stop platform	Reduce exploration bottlenecks	Phased rollout	Quicker exploration phase; improved investment climate
China	New Mineral Resources Law (2024), export controls, rare-earth industry consolidation	Secure strategic supply; raise sustainability	Enacted/Active	Increased state control, environmental mandates; reduced export dependency
U.S.	2025 Executive Order leveraging DPA, FAST41 status/dashboard, emergency permitting (28-day max), seabed EO	Boost critical minerals; streamline permitting; reduce foreign reliance	Under implementation	Faster approvals, federal coordination, but environmental oversight dilution risks

— Pablo Faúndez is Practice Leader of Environment and Society at GEM Mining Consulting.