Reuters | June 8, 2023 |
Sinkhole at the Alcaparrosa mine. (Image by Sernageomin, Twitter).
A work stoppage order by a Chilean environmental court on Thursday will prevent Canadian miner Lundin from reopening its Alcaparrosa copper mine, which it closed nearly a year ago after a gaping sinkhole opened in a nearby village.
The environmental court said that a temporary work stoppage was requested by government agency CDE which has filed a lawsuit before the court against the company. The stoppage could last until that trial is complete.
The CDE lawsuit accuses Lundin and its subsidiary of environmental damage in connection with a 118-foot-wide (36-meter-wide) sinkhole in Tierra Amarilla village in northern Chile.
Lundin voluntarily stopped work at the mine in July 2022 when the sinkhole appeared. In November, the company announced a plan to gradually restart the mine over 18 months.
In its statement on Thursday, Lundin said the environmental court’s reasoning was “incomplete” and argued that the lawsuit could hurt its business while it considers an appeal.
“The scenario proposed by the CDE puts in grave risk the continuity of the Alcaparrosa mine,” it said.
Lundin has argued that the sinkhole could have been caused by a number of factors, not all of them related to its mine.
The environmental court also said its decision reflected the “eventual impact” on the Copiapo River aquifer, the company’s noncompliance with environmental permits and imminent risks faced by workers.
Environmental regulator SMA charged the company in October with overexploitation of mineral resources as well as unauthorized construction.
The regulator’s charges could lead to a $13 million fine, plus the withdrawal of the mine’s environmental permit.
Lundin holds an 80% stake in Alcaparrosa, with the remainder held by Japan’s Sumitomo Metal Mining and Sumitomo Corp.
(By Fabian Cambero; Editing by Cynthia Osterman)
Los Andes Copper allowed to restart drilling in Chile, stock surges
Staff Writer | June 16, 2023 
Vizcachitas project site looking south. Credit: Los Andes Copper
Los Andes Copper (TSXV: LA) has been authorized to restart drilling at its flagship Vizcachitas project in Chile following a court ruling lifted an injunction against the company that lasted more than a year.
On March 18, 2022, the Second Environmental Court in Chile issued a preliminary injunction suspending the drilling program at Vizcachitas. On July 20, the court decided that the company’s drilling program was compatible with the presence of the Andean cat, and that drilling could resume, subject to certain conditions.
Los Andes and its consultants have since worked to obtain certain government agency filings and approvals required by the court as conditions, which it now has met.
Following the announcement, Los Andes Copper’s stock surged to a 52-week high of C$16.50 apiece. By noon EDT Friday, it was trading at C$16.35, up 7.9% for the session. The company has a market capitalization of C$460.2 million ($348m).
“Having fully complied with all the conditions imposed by the court, we are now able to return to drilling in order to pursue the optimizations highlighted in the pre-feasibility study published earlier this year,” Santiago Montt, CEO of Los Andes, said in a news release.
Located 150 km north of Santiago, Vizcachitas represents one of the largest advanced copper deposits in the Americas. A pre-feasibility study released in February 2023 confirmed the project as a “tier 1” asset with a $2.8 billion post-tax net present value (at an 8% discount rate) and an internal rate of return of 24%.
The initial life of mine is estimated at 26 years, during which Vizcachitas is expected to produce 8.8 billion lb. copper, 273.3 million lb. molybdenum and 32.7 million oz. silver. This is based on updated proven and probable reserves of 1.2 billion tonnes grading 0.36% copper, 136 ppm molybdenum and 1.1 g/t silver.
Staff Writer | June 16, 2023
Vizcachitas project site looking south. Credit: Los Andes Copper
Los Andes Copper (TSXV: LA) has been authorized to restart drilling at its flagship Vizcachitas project in Chile following a court ruling lifted an injunction against the company that lasted more than a year.
On March 18, 2022, the Second Environmental Court in Chile issued a preliminary injunction suspending the drilling program at Vizcachitas. On July 20, the court decided that the company’s drilling program was compatible with the presence of the Andean cat, and that drilling could resume, subject to certain conditions.
Los Andes and its consultants have since worked to obtain certain government agency filings and approvals required by the court as conditions, which it now has met.
Following the announcement, Los Andes Copper’s stock surged to a 52-week high of C$16.50 apiece. By noon EDT Friday, it was trading at C$16.35, up 7.9% for the session. The company has a market capitalization of C$460.2 million ($348m).
“Having fully complied with all the conditions imposed by the court, we are now able to return to drilling in order to pursue the optimizations highlighted in the pre-feasibility study published earlier this year,” Santiago Montt, CEO of Los Andes, said in a news release.
Located 150 km north of Santiago, Vizcachitas represents one of the largest advanced copper deposits in the Americas. A pre-feasibility study released in February 2023 confirmed the project as a “tier 1” asset with a $2.8 billion post-tax net present value (at an 8% discount rate) and an internal rate of return of 24%.
The initial life of mine is estimated at 26 years, during which Vizcachitas is expected to produce 8.8 billion lb. copper, 273.3 million lb. molybdenum and 32.7 million oz. silver. This is based on updated proven and probable reserves of 1.2 billion tonnes grading 0.36% copper, 136 ppm molybdenum and 1.1 g/t silver.
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