Colombia always had the potential to become a major mining jurisdiction but the mining sector is now completely frozen. There is a high level of uncertainty due to the governments push to reform the mining code, create a state mining company, and new a environmental decree.
For companies serious about servicing the Chilean market, incorporating a local entity is a crucial step. However, many foreign companies struggle with understanding the process, the required documentation, and the legal intricacies involved.
When I first set foot in Latin America over a decade ago, I was mesmerized. The region’s vibrant culture, dynamic markets, and immense business potential captivated me. Yet, while companies were eager to enter the region, I was surprised by how many failed. They struggled to navigate an unfamiliar business environment, often stumbling over their own missteps while overlooking critical legal, commercial, and cultural differences.
When companies begin operations in Chile, they often start with a small local team. Given the geographic distance and significant time differences between Chile and head offices located in other countries, local staff often operate with minimal day-to-day oversight. One common oversight in the early stages of incorporating an entity in Chile is neglecting corporate governance. However, the way powers are granted in the beginning can significantly impact the company’s operational efficiency and the protection of foreign shareholders.
One of the key factors for foreign mining suppliers to succeed in Brazil is establishing a local presence. In a market as complex and large as Brazil, simply selling products from abroad is often not enough. Having a physical presence in the country is essential for building trust, providing timely support, and ensuring long-term success in the mining sector.
Navigating Brazil’s complex tax system and understanding how to import goods can be challenging and time-consuming. Particularly for foreigners who are not accustomed to it. With the right support and local knowledge, it is manageable and possible for foreign companies to import mining technology, equipment, and services. Check out our guide to importing in Brazil.
As a follow up to the original hydrogen strategy, the government recently released its Green Hydrogen Action Plan which will help direct the industry from 2024 to 2030 – the time frame that Chile has set for itself to become a major hydrogen exporter by the end of the decade.
Santiago
Sydney
Lima