Lundin Mining (TSX: LUN) has been hit with a $3.3 million fine by the government of Chile in response to a sinkhole that occurred back in 2022 at its Alcaparrosa mine. The fine was levied following the completion of an investigation of the incident.
The fine pertains to a massive sinkhole that developed near the mine in 2022. The sinkhole, measuring 36 metres in diameter and up to 60 metres deep, was found to have been related to the over extraction of ore from the Alcaparrosa mine. As part of the fine, Chile’s regulator, the Superintendencia del Medio Ambiente, ordered the continued and permanent closure of the mine.
As part of the investigation, officials cited four violations at the mine, including unauthorized infrastructure modifications, over-extraction of minerals, and breaches of the projects environmental permits. The sinkhole itself was reportedly caused by the company mining to close to the Copiapo River aquifer, allowing more water to infiltrate in and weaken the rock mass.
Lundin reportedly has ten days to pay the fine, or 15 days to appeal the ruling.
READ: Lundin Mining Produces Record Copper And Zinc In 2024
Operations at Alcaparrosa have been shutterered since the incident arose, with Lundin reportedly having already removed mineral reserve estimates from the mine from its reserve statements. Lundin’s Candelaria operations are said to be unaffected.
Moving forward, Lundin has indicated it will review the notification and determine its next steps.
Lundin Mining last traded at $11.74 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
