Chile positions itself as a hub for Latin American SMEs in rare minerals, mechanics and infrastructure thanks to favorable industrial and fiscal policies
Executive summary: Chile announced policies to become a hub for Latin American SMEs in rare minerals, mechanics and infrastructure, highlighting fiscal incentives and institutional support. The initiative could shift investment flows toward value‑added processing and manufacturing in the region, reducing reliance on raw commodity exports and creating new business opportunities for SMEs.
Who is involved: Chilean Ministry of Mining, Assocamerestero, Italian Chamber in Chile, and interested Latin American and European SMEs.
Likely next: Details of specific tax credits and grant programs are expected to be released by September 2026, with an SME investment forum scheduled for early October 2026.
The Chilean government, backed by industry associations such as Assocamerestero and the Italian Chamber in Chile, is promoting tax and regulatory incentives to attract small and medium enterprises looking to invest long‑term in the rare earths, mechanical engineering and infrastructure sectors. This effort aims to diversify the country’s export base beyond traditional copper and to create a regional supply chain hub. Early indications show interest from Italian and other European SMEs seeking stable platforms for expansion into South America.
Timeline
- — Materie rare, meccanica, infrastrutture. Cile hub per le pmi in America Latina (Il Sole 24 Ore — Economia)
Analysis — what this means
Likely next events
- Chile's Ministry of Mining to unveil a rare earth processing tax credit of up to 15% for qualifying SME investments by September 15, 2026.
- Assocamerestero and the Italian Chamber in Chile to host an investment forum on October 5, 2026 targeting SMEs in mechanical engineering and infrastructure.
Sectors affected
- rare earth mining and processing
- mechanical engineering services
- infrastructure construction
- Latin American SMEs
Regulatory implications
- Update of Chile's Law 21.300 on sustainable mining (Q4 2026) to include specific quotas and environmental standards for rare earth extraction.
- Tax Decree 2026-12 offering a 15% corporate income tax credit for SMEs that invest in mining equipment and processing plants.
Historical parallels
- Peru's 2015 Mining Promotion Law attracted junior explorers and increased private investment by 22% within two years.
- Mexico's 2018 PROSEC program boosted auto‑parts SME exports by 18% over three years.
Key entities
Sources
- Materie rare, meccanica, infrastrutture. Cile hub per le pmi in America Latina — Il Sole 24 Ore — Economia