SANTIAGO (Reuters)

An extended delay in enacting reforms in Chile aimed at expediting mining permits represents a serious problem for the industry in the world's top copper-producing country, said Mario Larenas, the local head of U.S. miner Freeport-McMoRan (NYSE:FCX).

Chile, the world's second-biggest producer of lithium, faces regulatory hurdles slowing project developments. President Gabriel Boric's government strives to streamline mining permits and modify environmental assessments, currently under discussion by lawmakers.

"The issue of permits is a serious one," Larenas stated at a seminar organized by EY and Cesco in Santiago. He described the legislation as "perfectible" and "on the right track," but expressed concerns over legislative delays.

Initially, the proposed reforms were expected by year-end, which now seems unlikely.

Freeport is a significant producer of gold and base metals, particularly copper and molybdenum, operating projects in the United States, Peru, Chile, and Indonesia.

The company plans to invest $7.5 billion to expand its open-pit El Abra copper mine by 2025, pending an environmental permit. The project's minority partner is Chile's state-run copper company, Codelco.