Antofagasta tumbles on the London Stock Exchange as Chile warns of tax hikes

Shares in multinational miner Antofagasta have dropped 4.9 per cent on the FTSE 100, after Chile hinted that tax rises would be needed to cope with growing social pressures.

The country’s finance minister Rodrigo Cerda told Bloomberg TV that the country needs more “fiscal revenue”, amid surging inflation.

Antofagasta, which operates copper mines in Chile, has also been grappling with the proposed nationalisation of the country’s mining industry being pursued by new left-wing president Gabriel Boric.

“We expect that for the second semester of this year we are going to see much lower inflation,” Cerda said.

This view is not shared by analysts, with the future economic outlook for Chile remaining bleak.

Traders surveyed by the central bank see inflation above the 3 per cent target over the next two years despite borrowing cost hikes, while activity will slow sharply.