Codelco Faces Environmental Charges Over Dam Management

Chile's environmental regulator has charged state copper giant Codelco over mismanagement of its Talabre tailings dam, citing lack of a contingency plan and improper tailings deposit since 2017. Codelco faces a possible fine of 8 billion pesos, with 10 days to submit a compliance plan and an additional five days to appeal.

Chile's environmental regulator filed two charges against state copper giant Codelco on Thursday for mismanaging the Talabre tailings dam at its Ministro Hales division in northern Chile. The charges stem from the absence of a contingency plan to protect underground water and improper tailings deposits dating back to 2017.

Codelco, the world's largest copper miner, now has ten days to submit a compliance plan and an additional five days to appeal. The company could face a hefty fine of about 8 billion pesos ($8.71 million). Tailings dams, which store mining waste, must meet strict environmental standards to prevent disasters and contamination of nearby communities and natural resources.

Codelco responded swiftly, promising quick action to address the issues. "We fully understand the concern this situation causes, and we will thoroughly detail the plans we've developed and will deploy to comply with our obligations," the company said in a statement to Reuters. "We aim to resolve this situation promptly and correct any identified shortcomings." The charges, labeled as "serious" by the environmental regulator, were triggered by a citizen complaint alleging seepage from the dam since 2019, potentially affecting the Rio Loa aquifer and nearby areas.

The Talabre dam processes mining waste from Codelco's Ministro Hales, Chuquicamata, and Radomiro Tomic divisions, and the site was last inspected in 2017. The Superintendency of the Environment (SMA) conducted further analysis last year following the complaint. "The Superintendency formulated two charges against Codelco ... after finding the miner did not take environmental measures related to the Talabre dam," the SMA said.

Codelco last year sought an environmental permit to extend the life of its Ministro Hales mine by 30 years with a $2.5 billion investment. ($1 = 918.3200 Chilean pesos)

(With inputs from agencies.)