Antofagasta shares sank on Monday after the leftist candidate Boric won 58% of the vote in the Chilean presidential race.
The left-wing president was voted in on the promise of reforms that include greener policies to help protect the environment.
This would include the blocking of the controversial Dominga copper mine operated by Andes Iron.
Although this doesn’t have an immediate direct impact on FTSE 100 -listed Antofagasta, it does suggest life will become harder for the miner during his tenure.
Antogasta shares were down 4.1% at 1,314p at the time of writing on Monday.
The news comes shortly after the release of Antofagasta’s 2021 Climate Change Report in which the group outlined steps it was taking to improve their environmental sustainability.
These include measure such as increasing the use of seawater to help reduce water scarcity and the reduction of emissions.
“Climate change is one of the greatest challenges facing society and our company today. As a copper producer, Antofagasta can address this challenge both by decarbonising its operations and by responsibly and sustainably providing a key commodity for the transition to a low-carbon economy,” said Iván Arriagada, Antofagasta CEO.
“Our Climate Change Strategy is a dynamic strategy that we will be adapting in line with changing climate scenarios, regulation and scientific and technological advances, always with the aim of boosting the company’s resilience and competitiveness. This is, we believe, the best way to fulfil our purpose of developing mining for a better future.”
In a production report released in October, ANTO said they expected annual production to be in the region of 710-740,000 tonnes.
Antofagasta’s biggest recent issues have been heavy rainfall and the spread of COVID-19, they now have political risk to add to the list.