MercoPress. South Atlantic News Agency

Chile's Supreme Court gives nod to Dominga mining project

The Dominga project has a major political component, given its ties to former President Sebastián Piñera

Chile's Supreme Court sided this week with mining company Andes Iron, effectively reviving its controversial Dominga mining project after a 12-year legal battle.

The court rejected appeals from President Gabriel Boric Font's government and environmental groups, which had sought to block the initiative due to its proximity to the Humboldt Penguin National Reserve.

“This is a historic ruling, not only for the company but also for the country and its environmental institutions. Dominga is the project with the longest review in the 30 years of the Environmental Impact Assessment System, becoming a true symbol of bureaucracy and judicialization,” Andes Iron said in a statement.

“With this decision, more than 12 years of procedures and litigation come to an end, clearing all legal and technical questions and opening the way for Dominga's construction,” it added.

However, the ruling does not directly approve the project. Instead, it sends the case back for re-evaluation to the Committee of Ministers, which has voted against it ¡three times.

The project, first submitted in 2013, involves a US$2.5 billion investment and is expected to create 30,000 jobs. It plans to mine iron and copper over a 26-and-a-half-year lifespan.

The case also showcased the need for a more efficient and less bureaucratic environmental review process in the South American country.

The project, still having a strong political component due to its links to former President Sebastián Piñera, can count on the current government's rejection after insisting that the court's decision did not guarantee its final approval.

Analysts believe the prolonged legal conflict posed a serious institutional problem, as neverending permit procedures could deter future investments and harm the country's competitiveness.