Chilean regulator fines BHP’s Escondida mine for damage in Salar de Atacama

Chile’s environmental regulator reported Thursday that it has fined the Escondida mine, a subsidiary of BHP, $8.2 million for damage caused by water extraction in the Salar de Atacama salt flat.

Chile’s environmental watchdog SMA had filed a complaint against the world’s largest copper mine in mid-2020, saying it had exceeded the maximum permitted level for water extraction since 2005, exceeding the 2019 limit by three times.

After working out the penalty procedure, the SMA endorsed the charge brought against the mining company, showing that the owner caused irreparable environmental damage to Las Vegas de Tilopozo.

BHP denied non-compliance with its environmental permit and said it is considering further action. Escondida reiterates that at no time has it exceeded what was approved by the RCA in the Las Vegas de Tilopozo area. BHP also added that it stopped extracting water from the high Andean aquifers in 2019 and currently only operates with desalinated water.

Water use has been a major point of tension with regulators for copper and lithium miners in the Andean country, including lithium companies Albemarle and SQM.