The legislation establishes a new regulatory framework that will have a significant impact on the mining, construction, cement, asphalt, and glass industries.
On February 24, 2026, Law No. 21,800 was published in the Official Gazette, regulating the extraction of aggregates and amending various legal statutes.
The legislation establishes a new regulatory framework applicable to the extraction, transportation, processing, or use of aggregates, which will particularly affect the mining, construction, cement, asphalt, and glass industries.
It is important to note that this is a long-awaited response to the wide dispersion of municipal ordinances and the lack of regulation regarding this type of activity, seeking legal certainty and, indeed, the formalization of the activity and the fight against the clandestine operations that may exist today.
The New Procedure
This new regulatory framework applies to the extraction of aggregates from natural, non-navigable waterways by vessels weighing more than 100 tons and in buffer zones adjacent to the waterway (a 100-meter strip from the flood line). The new process consists of:
1. Municipal administrative feasibility: this step is mandatory for extraction in watercourses; in adjacent zones, applicants may apply directly to the Directorate of Hydraulic Works (DOH). It consists of a binding report from the municipality on the project’s compatibility with local land use.
2. Technical feasibility of extraction: in the event of a favorable response from the relevant municipality, the DOH, at the request of the interested party, evaluates the technical feasibility of the project within 20 days, following mandatory consultation with the sector’s Surveillance Boards.
3. Technical authorization for extraction in natural riverbeds and their adjacent regulation zones: the interested party must submit a comprehensive technical project.
In addition, the law distinguishes between minor mechanized extraction (up to a total of 30,000 m³) and major extraction (exceeding that volume). In the case of minor extraction, the applicant is exempt from submitting river engineering studies provided that the topographic survey indicates visible deposited material. The DOH will have 30 business days to issue a decision, extendable for justified reasons by up to 10 days (minor projects) or 15 days (major projects).
4. Municipal authorization: Following approval by the DOH, the mayor of the relevant municipality issues the final decree establishing the final operating conditions (capacity, hours, and schedules).
Enforcement Tools
Compliance with the law goes beyond simply obtaining an administrative permit. Thus, the legal text establishes a system of continuous oversight that encompasses traceability and environmental accountability, with the primary goal of combating illegal aggregate extraction.
Regarding traceability, all aggregate shipments must carry a Certificate of Origin certifying their authorized source; failure to do so authorizes the immediate seizure of the material and the motor vehicle, in addition to establishing a presumption of illegal extraction. Fines for non-compliance will range from 30 to 100 UTM (increased to 60 to 200 UTM in the case of repeat offenses).
At construction sites, it is mandatory to keep a copy of the certificate and invoices in a visible location. Non-compliance risks fines of 10 to 60 UTM and the suspension of the site for up to 30 days by court order. Furthermore, the General Water Directorate may order the immediate halt of unauthorized extractions or those that endanger public infrastructure or vital services.
Furthermore, the project owner is required to have a Closure Plan that financially guarantees restoration work upon completion of the project.
Implications for Compliance and Economic Crimes
The Law introduces two new criminal offenses to the list of economic crimes set forth in Law No. 21,595, which may give rise to criminal liability for legal entities under Law No. 20,393. These two new offenses are:
- Falsification of traceability documents: The tampering with technical authorizations or certificates of origin is punishable, as is the malicious use of false or incomplete information regarding the origin of the material.
- Illegal extraction of aggregates: Extraction carried out without a valid technical authorization or outside authorized areas and conditions is punishable. For this to constitute a criminal offense, the individual must have been administratively sanctioned more than once for the same conduct in the past two years.
The law has direct implications for the Crime Prevention Model (CPM). It is essential to determine whether the risk matrix identifies activities involving the risk of committing these offenses or, more comprehensively, to evaluate the implementation of specific processes where this risk exists.
Likewise, the integration of controls ensuring compliance—both internally and by third parties associated with the company’s operations—must be verified, which will require much more robust due diligence processes.
When does the regulation take effect?
The law takes effect on February 25, 2027, due to the complexity of the technical regulations that must be drafted. Thus, the affected industries will have this grace period to adjust their contracts, review internal processes, and update their Environmental Impact Statements (EIS) to meet the new standards required by the regulation. Similarly, municipalities have the same timeframe to adapt their ordinances to the new regulations.
However, it is important to note that municipal and sectoral authorizations granted prior to the law’s entry into force will continue to be governed by the regulations in effect at the time of their original issuance.
Finally, the renewal of these permits, or any requests to expand extraction areas, will be subject to the new, stricter provisions.
It should be noted that projects currently extracting more than 10,000 m³ per month will have a one-year period from the effective date to fully comply with the new provisions of this law.
For more information on the new regulation, please contact our Compliance and Public Law and Regulated Markets teams:
Rodrigo Albagli | Partner | ralbagli@az.cl
Antonio Rubilar | Partner | arubilar@az.cl
Yoab Bitran | Compliance Group Director | ybitran@az.cl
Gonzalo Bravo | Public Law and Regulated Markets Group Senior Associate | gbravo@az.cl
Loreto Osorio | Compliance Group Associate | losorio@az.cl
Be part of our multimedia platform and you can receive the latest legal news, events, podcazt and webinars.
