BHP’s Cerro Colorado must start from zero on environmental plan

A Chilean court ruled Tuesday that BHP’s Cerro Colorado copper mine will have to start over from zero on an environmental plan for a key mine maintenance project.

The Antofagasta environmental court annulled the 2019 approval for the project, which includes work on a low-grade mine deposit, internal roads and fields, noting that the regulator’s initial assessment was tainted by “substantial errors.”

The decision follows a January ruling by the country’s Supreme Court that upheld a claim by local indigenous communities that the process had failed to consider concerns about the project’s impact on natural resources, including a regional aquifer.

BHP told Reuters that the mine will continue to operate while the company reviews the decision to determine next steps.

“The ruling does not compromise Cerro Colorado’s continued operations,” the company said.

The court reported that initial environmental approvals failed to “properly assess” the risk of air pollution generated by the project, and expressed particular concern about the failure to adequately consult with local communities near the project site.

Cerro Colorado, a small mine in BHP’s Chilean portfolio, produced about 1.2% of Chile’s total copper production in 2020. The country is the world’s largest copper producer.