SANTIAGO, Nov 5 (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, the local head of U.S. miner

Freeport-McMoRan ( FCX ) said on Tuesday.

Chile, also the world's second-biggest producer of the key

battery metal lithium, is grappling with regulatory hurdles that

miners also argue slow project development.

President Gabriel Boric's government is pushing for reforms

to streamline mining permits in addition to modifying

environmental assessments. The reforms are currently under

discussion by lawmakers.

"The issue of permits is a serious one," said Mario Larenas,

Freeport's top executive for Chile, at a seminar organized by EY

and Cesco in Santiago.

He described the legislation as "perfectible" and "on the

right track," but lamented the delay in the legislative process.

"Initially, when they were presented, the idea was to have

them ready by the end of the year and that won't happen."

Freeport is a major gold and base metals

producer, especially 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.