18 Jul
Posted by Brian Anderson as Finance Help
Chile’s council of ministers for sustainability will start reviewing on July 21 the appeals to the approval granted to local company Minera Isla Riesco’s US$180mn Mina Invierno coal project, a source from the environment ministry (MMA) told BNamericas.
The council is led by environment minister Marнa Ignacia Benнtez and also includes the agriculture, finance, health, economy, development and reconstruction, energy and mining, public works, housing, transport and communications, and planning ministers.
The southern region XII evaluating committee unanimously approved the project on February 15.
Environmental and local community groups submitted four appeals before the council, highlighting the negative impact the project could have on wildlife, forestry and tourism on Isla Riesco, the country’s fourth largest island.
Mina Invierno involves an open pit operation to produce 6Mt/y of sub-bituminous coal over a 12-year mine life, based on current reserves of 73Mt. The company’s general manager Jorge Pedrals previously told BNamericas that construction was expected to start immediately after getting environmental approval.
Mina Invierno is expected to substantially reduce the country’s dependence on international markets by replacing close to 30% of current coal imports with local production. Chile currently imports 94% of coal used in power generation. Mina Invierno will replace imports from countries such as Colombia, Indonesia, Australia and the US.
The Invierno deposit is one of three coal concessions in the zone that were privatized in 2008. Together with Rнo Eduardo and Elena, the three deposits contain more than 1Bt of reserves.
Minera Isla Riesco is a JV between local fuel distributor Copec and shipping company Ultramar.
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