Report blasts Antofagasta’s Minera Los Pelambres

By analyst

By Valentina Ruiz Leotaud

An 18-pages long report released today by the London Mining Network slams Antofagasta Minerals’ 60%-owned Los Pelambres copper mine, located in the central-northern of Chile in Coquimbo Region.

In a move that comes just a couple of days prior to Antofagasta’s (LON:ANTO) annual general meeting in London, the document titled In the Valley of the Shadow of Death? A Report on Antofagasta Plc, Minera Los Pelambres and Los Caimanes, highlights allegations of corruption, environmental damage and water depletion caused by the project’s waste tailings dam.

According to the report, the El Mauro tailings dam, with a capacity of 1,700 million tonnes of mine waste, is the biggest in Latin America, surpassing Brazilian Samarco dam by 100 times. The magnitude of the dam, the dossier reads, is a cause of concern for both environmental groups and local residents, who think a similar the disaster to that that took place at Samarco in 2015 could happen in their own community.

Samarco’s breach was linked to small earthquakes and El Mauro’s facility not only is located in a highly seismic region, but it is also expected to grow in size as part of the Los Pelambres’ plans to expand production. “People living in the village of Caimanes would be expected to evacuate their homes within ten minutes of a breach at Antofagasta’s El Mauro dam,” the report states.

Los Pelambres has published a government-approved emergency plan, however, “residents’ attempts to access this plan using the Transparency Law have not been attended to,” today’s report adds.

Community concerns have resulted in a series of actions that date back to 2006 and that have delayed the company’s idea of building two new grinding mills and a desalination plant.

One of the major actions against the El Mauro tailings dam took place in July of 2013 when the Chilean Supreme Court ruled the tailings dam a “danger to human life” and made Minera Los Pelambres officially liable for any loss of human life in the event of a collapse of the dam.

El Mauro dam. Photo from Los Pelambres’ website.

Such ruling highlighted that the dam is constructed to withstand an earthquake of between 7.5 and 8.3 magnitude with an epicentre 80 km away, when the actual closest epicentre is just 60 km away. Thus, the company was ordered to submit the aforementioned emergency plan to reinforce the dam in case of an earthquake.

Later on, in May of 2014, Los Caimanes residents won a case against Minera Los Pelambres in the court of Los Vilos Province. The tailings dam was ruled a “Ruinous Work” (Obra Ruinosa – which asks for the demolition of the facility), in reference to the risk of the dam’s collapse in the event of an earthquake. However, the ruling was appealed in April of 2015, the company presented a safety action plan and a strategy to reduce the dam’s liquid content and, in the end, Los Pelambres won the appeal.

In October of that same year, in a case …read more

Source:: Infomine

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