Chile's Andes Iron looking for quick resolution to Dominga impasse

Chilean firm Andes Iron is looking for a quick resolution from the council of ministers regarding the environmental permit for its US$2.5bn Dominga iron ore-copper project in Coquimbo region (IV).

Andes Iron wants to start construction in 2018, with production beginning two years later, local paper El Mercurio reported on Monday.

"We believe that the council of ministers must decide on the issue in the first days of August. If not, we would prefer to go to the environmental court," the paper quoted CEO Iván Garrido as saying.

In early May, the company filed an appeal with the council to reverse the decision to reject the environmental permit.

On March 9, Coquimbo's environmental evaluation service SEA rejected the permit application despite SEA's earlier recommendation in favor of approval.

At the time, the company said the vote – which some have claimed was politically motivated – reflected the arbitrariness of the process.

"We hope that the council will reverse the damage caused not only to the Dominga project, but to the social pact, because arbitrariness in a democracy is harmful," Garrido said.

OPPOSITION

The project has faced strong opposition from environmental groups since it was submitted for approval in September 2013. The groups claim it will have a negative impact on the biodiversity of the area.

The company said that it is fully committed to meeting the environmental requirements, and that it is proposing creating an autonomous scientific studies center to ensure compliance with existing rules.

Dominga is a 25-year iron ore project, with copper as its main byproduct. Planned production is 12Mt/y of iron ore and 150,000t/y of copper in concentrates.

The council of ministers is made up of the heads of the environment, health, economy, agriculture, energy and mining ministries.