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SANTIAGO, July 1 (Reuters) - Chile’s government said on Tuesday it will capitalize state-owned miner Corporacion Nacional del Cobre with $200 million to help finance the company’s investment plans.
The funds are a part of Codelco’s 2013 profits.
Codelco gives all its profits to the state. The state then decides on an annual basis how much to return to the miner, exposing it to current government priorities at a time when Chileans are clamoring for greater social spending.
Center-left President Michelle Bachelet’s government will send Congress a bill during the third quarter “to assure its long-term financing,” the Finance Ministry said in a statement.
The government has said the plan to regulate Codelco’s financing will likely be linked to production and efficiency goals.
Codelco is pursuing a multi year, roughly $30 billion dollar investment plan, that includes a controversial $6.8 billion expansion of its massive Andina mine, which has come under fire due to concerns over its potential impact on nearby glaciers and the water supply of the capital, Santiago. (Reporting by Anthony Esposito; Editing by Sofina Mirza-Reid)