The government of Chile has decided to reject the Dominga project: the new copper and iron mine that threatened a nature reserve will not go ahead. The cabinet of Santiago – attended by those responsible for the environment, economy, mining, agriculture, energy and health – announced the decision last January, setting out its reasoning precisely: the initiative presents an environmental impact that is too extensive.

Plans called for extracting 12 million tonnes of iron and 150,000 of zinc

In the intentions of the promoting company – Andes Iron – the new mine would have made it possible to extract 12 million tonnes of iron and 150,000 tonnes of copper per year. To then allow easy transportation (and export) of the raw materials, the construction of a port and a desalination plant was also planned.

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Chile rejects $2.5bn iron and copper mine planned near penguin reserve theguardian.com/world/2023/jan…

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Those who supported the project had emphasised how copper in particular represents a fundamental element for the energy transition, as it is indispensable in the context of a progressive electrification linked to the abandonment of fossil fuels. It is estimated, indeed, that demand for this raw material could double between now and 2035, rising from the current 25 to 50 million tonnes.

The project on a nature reserve unique in the world

The Dominga mine, however, would have literally encroached upon a nature reserve unique in the world, in northern Chile, in which 80 per cent of all Humboldt penguin specimens live, in the archipelago of the same name. An area that, for precisely this reason, thrives on tourism (often ecological and sustainable).

Andes Iron has announced that it will file an appeal against the government's decision. The legal action will likely be based on the arguments the company has put forward so far: first and foremost, the fact that the mine would bring growth and development to a poor area of Chile. It will then attempt to offer reassurances on the environmental impact.

"Protecting the environment is a condition for development"

But Chile's Minister of Economy, Nicolás Grau, was clear speaking to Forbes Chile: "We have reviewed all the technical reports, and on that basis we unanimously decided to come out against the project. Protecting the environment is not an obstacle to development, but rather a condition for development." "The issues concerned marine life and that of various species. But also the desalination plant, not to mention the problems related to air quality and the risk of contamination of two aquifers," added Environment Minister Maisa Rojas.

The project had also come under scrutiny due to corruption suspicions involving former conservative president Sebastian Piñera, according to documents from the "Pandora Papers" investigation.