Chile Rejects Dominga Iron-Copper Project for Third Time

Andes Iron

Chile's government has once again denied environmental approval for Andes Iron's proposed Dominga iron and copper mine, citing significant environmental concerns. This marks the third time the project has been rejected, underscoring the challenges of balancing economic development with environmental protection in Chile's crucial mining sector.

Repeated Rejection and Environmental Concerns

A ministerial committee, led by the Ministry of the Environment (MoE), unanimously voted against the $2.5 billion project. The decision stems from concerns about the project's potential impact on biodiversity and the adequacy of Andes Iron's contingency and emergency plans for at-risk species. The committee's statement highlighted these environmental risks as the primary reasons for the denial.  This follows previous rejections in 2017 and 2023, with Andes Iron's appeals ultimately leading to a Supreme Court review in 2022, which seemingly did not sway the final decision.

Project Details and Industry Context

The Dominga project, an open-pit mine proposed for the Coquimbo region, aimed to produce 12 million tonnes per year of iron concentrate and 150,000 tonnes per year of copper concentrate as a byproduct over a 27-year lifespan.  Its rejection comes as Chile anticipates a substantial increase in copper production capacity—2.23 million tonnes per year between 2024 and 2033—driven by approximately $83.2 billion in mining investments across 51 projects.  This context emphasizes the tension between Chile's drive for mining development and growing environmental scrutiny.

Andes Iron's Response

Andes Iron has repeatedly asserted that the project complies with environmental regulations and has accused the MoE of bias.  The company's future course of action regarding the Dominga project remains uncertain following this latest setback.