Lundin's Alcaparrosa Mine Shutdown After Environmental Breach

Canadian mining company Lundin has been ordered by Chile's environmental regulator to permanently close its Alcaparrosa copper mine following a significant sinkhole incident. The mine, blamed for the sinkhole due to unauthorized operations, must shut down and faces a fine of 3.36 billion pesos.

Canadian mining corporation Lundin has been mandated to permanently close its Alcaparrosa copper mine in Chile. The decision, made by the nation's environmental regulator, stems from a massive sinkhole emerging in 2022 near the operation.

The mine had been on pause following the sinkhole's development, a chasm over 60 meters deep in the Tierra Amarilla area. Despite efforts to resume activity, Chile's SMA found Lundin liable and imposed a harsh penalty—a shutdown and a fine of 3.36 billion pesos.

Regulator head Marie Claude Plumer outlined that Lundin conducted unauthorized mining that impacted the rock mass stability, causing permanent environmental harm. Lundin's Chilean branch, Ojos del Salado, is evaluating the verdict, while asserting pilot cooperation with investigators and clarifying that their Candelaria project remains unaffected.

(With inputs from agencies.)