Major Chile resource projects face environmental roadblocks !! SANTIAGO, Aug 2 (Reuters) - Mining and energy projects in Chile, the world's largest copper producer, are facing regulatory delays amid increasing opposition from local communities and environmental groups. On Thursday, Endesa Chile was the latest company to suffer a setback when an appeals court rejected the approval of its $1.4 billion Punta Alcade 740-megawatt coal-fired power station citing pollution concerns. Chile's energy and mining sector has been pressuring the government to do more to unblock projects, particularly for the power-hungry copper mines in its remote, mineral-rich north. The conservative government of Sebastian Pinera has said that the country needs to add some 8,000 megawatts of energy supply by the end of the decade to its current 17,000 megawatts to bolster economic growth. But, in an election year, there is growing opposition from local communities in Chile who feel they have not benefited from the country's copper boom. Below is a list of other major projects that are facing delays, difficulties or potential opposition:
ENERGY
- HidroAysen, a hydropower project that would be the country's largest power producer if built, has received environmental approval but has faced stiff opposition from environmentalists who have brought it to a ministerial group for review, leaving it in virtual limbo.
Capacity: 2,750 megawatts
Investment: over $8 billion
Project owners: Chile's Colbun and Endesa Chile
- Energia Austral, a hydropower project, has been delayed because authorities have demanded further study of its Cuervo dam. Its other two units - Condor and Blanco have yet to present environmental impact studies.
Capacity: 1,000 megawatts
Investment: $3.6 billion
Project owners: Australia's Origin Energy and global miner Glencore Xstrata PLC.
- Castilla, a thermoelectric power plant and port project, was rejected by Chile's top court in 2012 for environmental reasons. The companies behind it have not yet said if they will revive the project by resubmitting a new environmental impact study.
Capacity: 2,100 megawatts
Investment: $5 billion
Project owners: Brazil's MPX Energia and Germany's E.ON
- Luz Minera, a natural gas-fired plant project by state mining firm Codelco, is in the planning stage for environmental approval after the firm's original plan for a coal fired station was scrapped. The company is one of several miners taking energy supply into its own hands to guarantee supply to its projects.
Capacity: 760 megawatts
Investment: $758 million
Project owner: Codelco
- Neltume, a hydroelectric project, has been delayed after local authorities rejected the plans. The project is currently being re-evaluated.
Capacity: 490 megawatts
Investment: $781 million
Project owner: Endesa Chile
- Pacifico, a coal-fired power station, received environmental approval after an initial rejection in 2009, but construction is yet to begin.
Capacity: 350 megawatts
Investment: $750 million
Project owner: Chile's Rio Seco
MINING
- Construction of gold project Pascua-Lama has been frozen by a local court and the country's environmental regulator until new infrastructure to prevent water pollution is built and its licence is reviewed. This could take up to two years. Expected production: 800,000-850,000 ounces of gold in first five years
Investment: $8.5 billion
Project owner: Canada's Barrick Gold
- Copper and gold project El Morro was rejected last year by the Supreme Court on the grounds
that the permitting authority had not adequately consulted the indigenous community. The company is hoping for approval in 2013.
Reserves: 6.1 million pounds of copper and 8.4 million ounces of gold
Investment: $3.9 billion
Project owner: Canada's Goldcorp
- The planned expansion of copper mine Andina near Santiago has been opposed by local communities and protest groups who question its impact on glaciers and water resources. Planned production: an increase in refined copper by about 400,000 tonnes a year.
Investment: $6.8 billion
Project owner: Codelco
- Antofagasta is studying a possible expansion of its flagship Los Pelambres copper mine, but has faced a barrage of claims by local communities and protest groups.
Production in 2012: over 400,000 tonnes
Project owner: London-listed Antofagasta Minerals
(Reporting by Fabian Cambero, Writing by Rosalba O'Brien;
Editing by Carol Bishopric)
It's sure nice to know that Anaconda sold their interests in South America and expects 2 payments of $1 million upon commissioning of each mill. The first of which should be due now. The next few months should be real interesting as to how the price of gold will further affect the mining sector. Anaconda is in a position of strength, with NO DEBT and a profit producing mine, even at these low gold prices. How many other gold companies can say the same? Once the dust settles Anaconda will still be standing, overlooking the so many other mining companies that have fallen. Growth through Acquisition for gold mills that are still in pre-production and in desperate need for cash can become very enticing!!! GLTA!!! Cheers!!!!