Former US Secretary of State Mike Pompeo joins ACG Metals board
Pompeo joins ACG as part of a strategic partnership the firm has signed with Impact Investments LLC, where he is executive chairman.
Chile’s environmental authority SMA ordered on Thursday the “total and definitive” closure of Lundin Mining’s (TSX: LUN) Alcaparrosa mine, as a result of an almost three-year long probe into a massive sinkhole that emerged near the operation in 2022.
The huge 36-metre-diameter sinkhole more than 60 meters deep that appeared close to the Alcaparrosa mine in northern Chile drew widespread global attention and saw Lundin being charged by authorities.
SMA officials said at the time that preliminary investigations linked the sinkhole on the mine’s property to the over extraction of ore.
On Thursday, the watchdog confirmed four environmental violations, including over-extraction of minerals, unauthorized infrastructure modifications, and other breaches of the project’s environmental permits. In addition to the permanent closure of mining operations, the company faces a fine of $3.41 million.
The regulator’s head, Marie Claude Plumer, said that Lundin operated in unauthorized sectors up until the Copiapo River aquifer, which allowed more water to infiltrate in and subsequently weaken the rock mass.
“The company caused irreparable environmental damage,” she said.
Plumer emphasized the importance of adhering to environmental permits. “The rules are clear and must be followed. Companies are fully aware of the conditions under which they are allowed to operate,” she said.
The SMA said the company has 10 business days to pay or 15 days to appeal the decision before the Environmental Tribunal.
Lundin’s local unit, Ojos del Salado, said in a statement that it would review the ruling and determine its next steps.
The Toronto-based miner owns 80% of the Ojos del Salado complex, which holds two underground mines: Santos and Alcaparrosa. The remaining 20% is held by Japan’s Sumitomo Metal Mining and Sumitomo Corporation.
Sinkholes are pits that form over areas where water gathers underground without external drainage, causing the water to carve out subterranean caverns.
These cavities also form regularly near old and active mines, where large amounts of rock and ore have been extracted, studies have shown.
Sinkholes often form gradually over many years, but can also open quite suddenly, taking cars, homes and streets down with them.
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