Tuesday, December 21, 2021

Chile's Boric says will oppose controversial Dominga copper-iron mine

Sun, December 19, 2021, 6:22 PM

SANTIAGO, Dec 19 (Reuters) - Chilean President-elect Gabriel Boric said on Sunday he will oppose mining initiatives that "destroy" the natural environment, including the controversial $2.5 billion Dominga iron, copper and gold mining project.

During a speech after his electoral victory, he said his government will also expand social rights but will do so with fiscal responsibility and taking care of the economy in the world's top copper producing nation.

"Destroying the world is destroying ourselves. We do not want more 'sacrifice zones', we do not want projects that destroy our country, that destroy communities and we exemplify this in a case that has been symbolic: No to Dominga," he said.

A regional Chilean environmental commission in August had approved Andes Iron's Dominga project after years of wrangling in the country's courts and after the body had previously rejected the proposal.

The mining project would be located about 500 km (310 miles) north of the capital Santiago, and near ecological reserves.

Critics say its proximity to environmentally sensitive areas would cause undue damage. Andes Iron, a privately held Chilean company, has long rejected that assertion.

(Reporting by Anthony Esposito and Fabian Cambero)

Chile mining firms call for moderation after Boric election win

Fabian Cambero
Sun, December 19, 2021

By Fabian Cambero

SANTIAGO, Dec 19 (Reuters) - Chile's mining sector congratulated leftist Gabriel Boric on Sunday after he secured victory in the country's presidential election and called for moderation and dialogue to safeguard the industry in the world's largest copper producing nation.

Boric comfortably beat right-wing rival José Antonio Kast, who conceded defeat on Sunday evening after a divisive election race. Both candidates were from outside the mainstream political parties, though mining firms had been more wary of Boric.

The National Mining Society (Sonami) said in a statement that voters have "sent a clear message" about the need to maintain Chile's economic and social development.

"We trust that the spirit of programmatic convergence, moderation and openness to dialogue shown during the last week of the campaign will prevail," it added.

Boric has pledged to overhaul Chile's market-orientated economic model that dates back to the dictatorship of General Augusto Pinochet, credited for driving decades of growth but also fostering inequality.

The country is also rewriting its constitution, which could see environmental regulations tightened, and lawmakers are looking to raise taxation on mining firms, who are currently benefiting from record high global metals prices.

Boric has said that he would look to create a state lithium firm and criticized privatization of the sector, where Albemarle and SQM are currently the main two players.

State-owned Codelco is the world largest copper miner, but there are many large multinationals in Chile's copper sector including BHP, Glencore, Anglo American and Antofagasta. (Reporting by Fabian Cambero; Editing by Adam Jourdan and Sam Holmes)

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