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Officials shut down major mining site after unprecedented disaster: 'The company caused irreparable … damage'

Lundin was ordered to pay $3.4 million.

Lundin was ordered to pay $3.4 million.

Photo Credit: iStock

A disaster in Chile led to the shutdown of a Canadian company's mine, according to Reuters

What's happening?

Mining company Lundin operated several sites in northern Chile. After a massive sinkhole opened up in 2022, the Alcaparrosa copper mine was temporarily closed. Local regulators have since ruled that the closure is permanent.

Lundin "operated in unauthorized sectors, up until the Copiapo River aquifer, which allowed more water to infiltrate in and subsequently weaken the rock mass," said Marie Claude Plumer, the head of La Superintendencia del Medio Ambiente, the government agency that oversees environmental protections in industry. "The company caused irreparable environmental damage."

The SMA has previously levied fines against other mining companies for water and wildlife violations. 

Why is this important?

Copper is a vital mineral for energy storage, which is needed to accelerate the adoption of sustainable energy. The region where Lundin's mine was shut down is also well-known for its lithium reserves.

The challenge in both of those instances is in securing the safety and well-being of locals. A sinkhole is an obvious threat both to people and the ecosystem. And lithium mining in the desert region's salt flats demands a large amount of water, which residents can't afford to spare. 

What's being done about critical mineral mining?

In addition to closing its copper mine, Lundin was ordered to pay a $3.4 million fine for the environmental damage it caused. Chile also hasn't been shy about denying the creation of new mines in ecologically sensitive areas. Lundin continues to mine at nearby Candelaria.

These might seem like roadblocks to minerals needed to help the environment, but Chile is invested in the green transition. The country is hoping to phase out dirty fuels by 2040. The government is also seeking new technologies that allow it to mine these minerals sustainably.

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