Codelco Faces Environmental Backlash Again: Chile's Regulator Files Serious Charges

State-owned copper mining giant Codelco is under scrutiny by Chile's environmental regulator, the Superintendency of the Environment (SMA). The SMA has filed a serious charge against the company, alleging violations of environmental regulations at its Potrerillos copper smelter in the Atacama region.

This is their second violation at least, with previously in 2015 their Talabre tailings dam at its Ministro Hales department gaining flak for seepage. For this, Codelco was fined up to 8 billion pesos ($8.71 million) back in 2017.

The charges stem from an audit conducted by the SMA, which revealed that Codelco had failed to implement a proper monitoring system for sulfur dioxide emissions and other critical procedures. The regulator has classified this as a serious offense, the second highest level of infraction, which could result in severe penalties.

If found guilty, Codelco could face a substantial fine of approximately 4 billion pesos ($4 million). Additionally, the company may have its environmental permit revoked, potentially leading to the closure of the facility.

The SMA's statement emphasized the gravity of the situation, stating, "The audit concluded that the system has not been implemented. Based on all these antecedents, and after legal analysis, the Superintendency of the Environment charged non-compliance by the owner."

Codelco has yet to provide an official response to the allegations. However, the company has 10 days to submit a detailed compliance plan outlining corrective measure. Furthermore, it has a 15-day window to present a formal defense against the charges.

In a previous ruling, the SMA leveled two primary charges against Codelco. It is charged with negligence in tailings dam management. The company failed to implement a comprehensive contingency plan to protect underground water sources, particularly the Rio Loa aquifer. Additionally, Codelco was accused of improperly depositing tailings products since 2017.

Codelco's case underscores the need for mining companies to prioritize environmental sustainability and adhere to rigorous environmental standards. As one of the world's largest copper producers, Codelco's actions have far-reaching implications for the industry and the global supply of copper, a critical metal for various technological applications.

The charges stem from a 2015 complaint alleging seepage from the Talabre dam, which impacted the Rio Loa aquifer and the city of Calama. The SMA conducted investigations in 2015 and 2017 to assess the situation, and found the company guilty.

Tailings dams, used to store mining waste, pose significant environmental risks if not managed properly. The potential for dam failures, water contamination, and soil erosion highlights the importance of stringent regulatory oversight and responsible mining practices.