Chilean Lawmaker Ñanco Introduces Bill to Safeguard Critical Minerals and Rare Earths Against Foreign Investment Threats

Original article: Diputada Ñanco presenta proyecto para «blindar» minerales críticos y tierras raras frente a inversión extranjera que comprometa la soberanía de Chile

Amid ongoing discussions following the recent joint declaration between Chile and the United States regarding critical minerals and rare earths, Representative Coca Ñanco (Frente Amplio) has unveiled a legislative proposal aimed at bolstering state tools to manage foreign direct investment.

Specifically, the initiative seeks to amend law 20.848 to allow exceptions to the non-discrimination principle towards foreign capital in strategic sectors such as critical minerals, key infrastructure, dual-use technologies, or essential services.

The proposal arises in an international context marked by a growing geopolitical dispute over control of strategic resources—vital for energy transition, digitalization, and new technologies—and aims to ensure that Chile possesses legal instruments to protect its economic sovereignty and state security against potential external pressures or risks of control concentration over these resources.

In this regard, Representative Ñanco stated, «The energy transition and new technologies have made critical minerals a globally strategic issue, and Chile holds essential reserves for this process, so we cannot treat this solely as a commercial discussion.»

For the lawmaker, «This also involves the security of the state and the country’s economic sovereignty. The recently signed declaration between Chile and the United States brings this debate to the forefront,» emphasized Ñanco.

«What we propose with this bill is very simple: that the state has the legal tools to limit, condition, or even reject foreign investments when they compromise the national interest, especially regarding strategic minerals, critical infrastructure, or sensitive technologies,» she argued.

«Chile must leverage its mineral wealth to strengthen its own productive and technological development. But for that, we need clear rules that ensure these resources are always at the service of the country and not exposed to decisions that could jeopardize our economic autonomy or security,» Ñanco added.

On his part, Representative Jaime Bassa (also FA) highlighted that «this project is moving in the right direction because it acknowledges something that has long been avoided: that foreign investment is not neutral when national interest is at stake.»

«In a context where critical minerals are key to the development and security of countries, Chile has a duty to establish clear rules to protect its economic sovereignty. This is not about shutting ourselves off from the world, but ensuring that our strategic resources serve the country and are not conditioned by external interests,» Bassa noted.

What Does the Proposal Entail?

The proposal establishes that the rights and guarantees regime of Law N° 20.848 will not apply when investments pertain to the exploration, exploitation, or marketing of critical or strategic minerals, as well as critical infrastructure, dual-use technologies, or essential public utility services; and when their realization affects the national interest, economic sovereignty, state security, or the country’s supply.

Through this, the bill seeks to equip the state with a preventive tool to safeguard key resources for Chile’s economic, technological, and energy development in the current geopolitical landscape.

The Citizen