Top copper nation gets tougher on water with BHP in crosshairs

Authorities in Chile are cracking down on water use by mines in the driest desert on earth, threatening future supply in the top copper-producing nation.

On Friday, Chile’s environmental agency SMA charged BHP Group’s Escondida for allegedly drawing more water than allowed for almost 15 years in a move that could result in the loss of its permit, closure or a fine. Just to the south, state-owned Codelco has suspended a planned expansion of its Salvador mine until it can resolve a suit filed by the State Defense Council against the project’s proposed use of water.

Mines that dot the parched Atacama desert are coming under increasing scrutiny for their use of water, with lithium giant Soc. Quimica & Minera de Chile facing a Supreme Court ruling after community complaints. Even in central Chile, scare water supplies have restricted output at Anglo American Plc’s Los Bronces mine and Codelco’s El Teniente.