Chile environmental watchdog charges SQM iodine unit

Chile's environmental watchdog SMA has filed charges against local non-metallic miner and fertilizer group SQM's Pampa Hermosa iodine project in northern Tarapacá region (I).

The regulator filed eight charges relating to a series of alleged breaches of its environmental permit.

The allegations concern the extraction of water from the Llamara salt flat as well as a "failure" to reinject water into underground aqueducts known as puquíos.

Pampa Hermosa, which got its environmental permit in 2010, is part of SQM's Nueva Victoria iodine-nitrate operations. Current capacity at the Nueva Victoria facility is 9,000t/y of iodine and 700,000t/y of nitrates, according to the company's 2015 annual report.

SMA also accuses the company of failing to properly monitor water levels at the salt flat as well as extracting water from an area without a permit to do so, according to SMA documents.

The company faces fines of up to 25,000UTAs (annual tax units, about US$20.2mn), the closure of its facilities or the revocation of its environmental permit.

Once officially notified, SQM has 10 days to present a regulation compliance plan and 15 days to file a rebuttal of the charges.

SQM said in a statement it will "respond accordingly to these observations and claims made by the SMA and if required, will implement all of the changes necessary to remain in compliance with the current environmental regulations.

"SQM will continue to monitor the environment in the areas close to its operations, and will take all the necessary precautions to protect and sustain its operations."