Glencore (LSE:GLEN) notes a Chilean Second Environmental Tribunal has purported to set aside the Environmental Authorisation (RCA) granted in 2021 for the independently managed Collahuasi mine's "Infrastructure Development and Production Capacity Improvement" project, which includes a desalination plant that is now almost complete.
The Tribunal's 15 May ruling relates to two specific aspects relating to analysis of effects on a local community and on the marine environment.
Collahuasi is seeking full clarification from the Tribunal and the Environmental Assessment Service to identify the specific effects the ruling requires SEA to re-examine and any impact on Collahuasi's operation.
Based on the information currently available and subject to existing alternative water sources for Collahuasi, no immediate impact on production is currently expected.
Collahuasi confirmed the environmental permitting process for the project was carried out in accordance with local regulations, that the RCA was obtained in December 2021 following a SEA-led assessment that included the indigenous consultation defined by the competent authority, and that the Ministers Committee subsequently confirmed the approval in August 2023.
Collahuasi will continue to work with relevant authorities and stakeholders, acting in accordance with the legal framework, to determine appropriate next steps.
Further updates will be provided as appropriate.
