Andes Iron copper-iron mine in Humboldt Archipelago, Chile, defeated again

A proposed US$2.5 billion open-pit copper and iron mining complex, under development by Andes Iron, that would have threatened Humboldt penguins and other marine species, has been denied permission to proceed after a years-long legal battle fought by local communities and environmental groups. The project was also embroiled in a corruption scandal linked to former president Sebastian Pinera.

“We hope that this rejection by the government will be joined by the declaration of a protected area for the entire Humboldt archipelago and its surroundings that will allow this ecosystem to be definitively shielded from the ambition and corruption that surrounded the creation of this project," Matías Asun, director of Greenpeace Chile.

Andes Iron

Copper mining has played a critical role in the Coquimbo region of central Chile from the time of colonization to the present day. Santiago-based Andes Iron, bought mineral rights for the Dominga Project from Mineria Active in 2010, and proposed to build a major mineral processing complex including as a seaport shipping terminal. This US$2.5 billion project is expected to last 22 years.  

Humboldt Archipelago

The Dominga project threatens the Humboldt Archipelago, which is home to several species classified as endangered or vulnerable by the International Union for the Conservation of Nature (IUCN), including 80% of the world’s population of Humboldt penguins, as well as blue whales, sea lions and sea otters. The marine life supports artisanal fishing and tourism to local communities.

Community Resistance

Local and national groups like the Alianza Humboldt, Asociación de Pescadores y Mariscadores de Los Choros, Changa Juana Vergara y Familia and Defensa Ambiental organized protests such as a human chain on the coastline that spelled out the words ‘No to Dominga.’ Protests also took place in the town of La Serena, as well as major Çhilean cities like Santiago and Valparaíso.

Political Scandal
 
The Pandora Papers, a major leak of offshore banking documents in 2021, revealed that the family of Sebastián Piñera, a former president of Chile and major investor in the project, had sold their stake for $138 million to a friend in 2010, with a secret clause that the money would only be paid if the government did not enact new environmental regulations. (Piñera was president at the time.)

Legal Battles

In 2017, the Dominga project was canceled by the socialist government of Michelle Bachelet on environmental grounds but the company appealed. Then in 2021, prosecutors opened an investigation into Piñera over the Pandora Papers. Meanwhile the project was challenged repeatedly in court by NGOs like Oceana. Ultimately the Supreme Court asked the government to make a final decision in 2023.

Victory

In January 2023, a committee of government ministers voted unanimously to deny permits to Andes Iron after considering the impacts on wildlife, water sources, air quality and marine-protected areas. The company recently announced that it plans to sue yet again, to try and get the government decision overturned.

Company Response 

“The Dominga project not only meets but exceeds all standards and is aligned with the principles established by the Government for the sustainable development of industrial and mining projects in terms of environmental protection, community relations, use of clean energy, use of desalinated water, among others."

Company Statement

This is #88 in our series of Instagram infographics on resistance against corporate power.

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