ARTICLE
4 August 2022

Chile's Proposed Constitutional Changes To Natural Resources Rights Could Have Devastating Effects On Foreign Investors: How Can International Law Protect Them?

JD
Jones Day
Contributor
Jones Day is a global law firm with more than 2,500 lawyers across five continents. The Firm is distinguished by a singular tradition of client service; the mutual commitment to, and the seamless collaboration of, a true partnership; formidable legal talent across multiple disciplines and jurisdictions; and shared professional values that focus on client needs.
Chile is currently considering a new Constitution—due to be put to a referendum in September—and foreign investors should be aware of its potential impact on their investments in the country.
Chile Government, Public Sector
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Chile is currently considering a new Constitution-due to be put to a referendum in September-and foreign investors should be aware of its potential impact on their investments in the country. The proposed changes in the draft Constitution could reduce compensation awards for expropriated property, alter water rights, and freeze mining concessions. The draft would also grant wide discretion to the country's courts by allowing judges to decide on the amount of compensation owed for expropriated property. As to changes in the regulation of natural resources-if the draft is approved, the government would authorize only noncommercial water use and could institute a freeze on the granting of new mining concessions.

Given this uncertainty, foreign investors should prepare for potential litigation, build political capital with local communities, and consider available international treaty protections to safeguard their assets.

Read the White Paper.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
4 August 2022

Chile's Proposed Constitutional Changes To Natural Resources Rights Could Have Devastating Effects On Foreign Investors: How Can International Law Protect Them?

Chile Government, Public Sector
Contributor
Jones Day is a global law firm with more than 2,500 lawyers across five continents. The Firm is distinguished by a singular tradition of client service; the mutual commitment to, and the seamless collaboration of, a true partnership; formidable legal talent across multiple disciplines and jurisdictions; and shared professional values that focus on client needs.
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