# Apropiaci\'on privada de renta de recursos naturales? El caso del cobre en Chile

## TL;DR

This paper examines how private companies in Chile have appropriated copper resource rents since 1990, revealing significant gains and emphasizing the need for institutional reforms to ensure sustainable resource management.

## Contribution

It introduces the concept of Least Present Value Revenue (LPVR) as a new institutional framework to improve resource rent management in resource-rich countries.

## Key findings

- Private companies have recovered over US$ 40 billion in copper rents up to 2012.
- Some private firms captured more than their initial investments during their lifecycle.
- Implementing LPVR could help better manage resource rents and ensure sustainability.

## Abstract

Unexpected increases of natural resource prices can generate rents, value that should be recovered by the State to minimize inefficiencies, avoid arbitrary discrimination between citizens and keep a sustainable trajectory. As a case study about private appropriation of natural resource rent, this work explores the case of copper in Chile since 1990, empirically analyzing if the 12 main private mining companies have recovered in present value more than their investment during their life cycle. The results of this exercise, applicable to other natural resources, indicate that some actually have, capturing about US$ 40 billion up to 2012. Elaborating an adequate institutional framework for future deposits remain important challenges for Chile to plentifully take advantage of its mining potential, as well as for any country with an abundant resource base to better enjoy its natural wealth. For that purpose, a concession known as Least Present Value Revenue (LPVR) is proposed.

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Source: https://tomesphere.com/paper/1812.05093