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Will Peru or Mexico introduce mining tax or royalty legislation affecting SCCO by year-end 2026?

Resolves January 31, 2027(275d)
IG: 0.48

Current Prediction

21%
Likely No
Model Agreement96%
Predictions9 runs
Last UpdatedApril 23, 2026

Prediction History

Initial
20%
Mar 20
+1pp
Current
21%
Apr 23
Elevated copper prices create fiscal incentive for resource nationalism

Chile royalty debate may cascade; no active Peru or Mexico proposals in Q1 2026. Probability lifts from 0.20 to 0.21.

Why This Question Matters

Dual-jurisdiction tax risk is a key component of the ELEVATED regulatory assessment. New mining taxes in either Peru or Mexico would compound the $404.6M workers' participation burden and could alter the $20.5B capex program's return profile. Absence of legislation would de-escalate the forward-looking regulatory risk.

REGULATORY_EXPOSUREREVENUE_DURABILITY

Prediction Distribution

0%25%50%75%100%
opus
sonnet
haiku
Range: 18%24%Aggregate: 21%
Individual Predictions(9 runs)
opusRun 1
22%

High copper prices historically trigger mining tax proposals in Latin America. Chile has been debating royalty reform. Peru's post-crisis governments have considered mining taxes. Mexico's current stance is quieter but potential shift toward year-end. Probability slightly above baseline 20%.

High copper prices trigger tax proposalsChile debate may influence PeruMexico potential shift
opusRun 2
18%

Fiscal environments in both countries are relatively stable vs. the last five years. Political bandwidth consumed by other priorities. Baseline maintained.

Stable fiscal environmentsPolitical bandwidth elsewhereBaseline
opusRun 3
24%

Peru's fiscal pressures — combined with any new administration stabilization — could prompt mining tax proposals before year-end. Mining royalty reform tends to be proposed when commodity prices are elevated and fiscal revenue is demanded. Moderate uplift.

Peru fiscal pressuresElevated copper prices create revenue demandModerate uplift
sonnetRun 1
20%

Baseline probability reflects base rate for such legislation in any single year.

Base rateNo specific trigger visibleBaseline
sonnetRun 2
22%

Resource nationalism pressure across Latin America elevated. Chile's ongoing debate may cascade. Slight uplift.

Resource nationalism pressureChile cascade potentialSlight uplift
sonnetRun 3
19%

No specific proposals currently being debated publicly. Baseline.

No specific proposalsBaselineNo trigger event
haikuRun 1
20%

Baseline.

BaselineNo triggerMaintain
haikuRun 2
22%

Slight uplift on resource nationalism pressure.

Resource nationalismSlight upliftLATAM pressure
haikuRun 3
21%

Near baseline with slight uplift.

Near baselineSlight upliftCommodity price pressure

Resolution Criteria

Resolves YES if either Peru or Mexico formally introduces (submits to legislature) or enacts legislation specifically targeting mining taxation, royalties, or windfall taxes that would materially affect SCCO's operations during calendar year 2026. Resolves NO if no such legislation is introduced.

Resolution Source

Official government gazettes, legislative records, SCCO 10-K/10-Q risk factor disclosures, or credible news sources

Source Trigger

Peru or Mexico mining tax legislation introduced

regulatory-readerREGULATORY_EXPOSUREMEDIUM
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