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The main copper exporting country in the world rejected the ‘Dominga’ port mining project when assessing the environmental damage it caused. A decision applauded by environmentalists and consistent with the fight against climate change led by the leftist president Gabriel Boric. However, some citizens and businessmen were dissatisfied with the ministerial decision due to the economic losses that it can generate.
This Wednesday, January 18, the Ministers of the Environment, Health, Economy, Energy and Mining of the Government of the leftist Gabriel Boric put an end to a long process of almost 10 years in which the company Andes Iron, dedicated to large-scale mining activities, sought implement the ‘Dominga’ port mining project in the commune of La Higuera in northern Chile.
The Minister of the Environment, Maisa Rojas, announced the decision to reject the project based on arguments from the Environmental Assessment Service (SEA), the body in charge of studying the environmental impact of ‘Dominga’ on the ocean and the damage to maritime biodiversity. “Unanimously, this Committee of ministers resolved to accept the twelve SEA claims and therefore the ‘Dominga’ port mining project is left with an unfavorable evaluation,” said Minister Rojas on national television.
The project involves the construction of two open-cast iron and copper mines, as well as a port just 30 kilometers from the Humboldt Penguin National Reserve, an ecological area in which 80% of the world’s population lives endangered animals. It is also home to chungungos -the world’s smallest otter- and hundreds of sea lions and bottlenose dolphins. It also serves as a shelter for 14 different species of whales that rise up there from the depths to breathe.
However, in a statement, the company Andes Iron contradicted the decision of the Committee of Ministers and stated that “the ‘Dominga’ project not only meets, but exceeds all standards and is aligned with the principles established by the government for industrial projects and sustainable miners.”
Environmentalists and citizens celebrate the decision of the Chilean Government
The rejection of the ‘Dominga’ project caused happiness among several Chilean citizens who gathered in the capital, Santiago, in front of the Ministry of the Environment, a portfolio that headed the Committee of Ministers in charge of evaluating the mining project. Citizens carried banners with drawings and environmental messages.
“This decision of six to zero responds to Chile’s commitment to the environment,” said a protester.
Leftist President Gabriel Boric had promised to put an end to ‘Dominga’ during his campaign, so this Wednesday’s rejection represents a victory for his management and is consistent with his government plan.
Environmental experts supported the ministerial decision by arguing that the lack of studies on the climate impact on the ocean was one of the main concerns surrounding this project. Oceana, an NGO for the preservation of the oceans, celebrated and attributed this legal victory to the struggle of the La Higuera communities and social leaders. However, he recalled that there are more mining projects in Chile that must be stopped.
Dominga is just one of many projects seeking to industrialize this pristine ecosystem. A Marine Protected Area free of high-impact industries is necessary and urgent!
— Oceana Chile (@OceanaChile) January 18, 2023
Voices in favor of ‘Dominga’
Despite the celebration of some Chileans, others are not happy with the decision because they argue that the rejection of the mining port project represents a great economic loss for La Higuera, one of the poorest communes in the South American country.
‘Dominga’ intended to extract 12 million tons of iron and generate 10,000 jobs in its initial phase with an investment of 2,500 million dollars. The mayor of Higuera, Yerko Galleguillos, is one of the main defenders of the mining project. He ironically criticized the decision of the ministers. “When are we going to talk about man and stop talking about little fish and little birds?” Galleguillos told local media.
The mayor of La Higuera added that there is hopelessness in the commune and that there is nothing left but to trust in justice and support the appeal that the Andes Iron company has already announced before the competent authorities.
However, the Minister of Economy Nicolás Grau stood up to the criticism in economic matters and assured that “the protection of the environment and the contribution against the climate fight is not an obstacle, but an opportunity and a catalyst for national and foreign investment in Chile.” Grau also announced the implementation of an alternative project of 726 million dollars in the area to boost and promote employment.
But the government continues without convincing several citizens of the 3,700 inhabitants of the La Higuera commune who had participated in a popular consultation organized by the municipality in March 2022, in which 96.1% of the community voted in favor of the project development.
Legal and political battle in the ‘Dominga’ case
This mining project had previously been rejected in the second term of former President Michelle Bachelet, but the legal battle continued and was transferred to Chile’s highest court in May of last year. The court concluded that it was now the administration of President Gabriel Boric that had to make a final decision.
‘Dominga’ has generated a lot of controversy in Chile for years. It is associated with alleged corruption as it was learned that the ‘Dominga’ purchase agreement included a clause for the last payment to be made only if a new environmental protection area was not created near the mine that would prevent the implementation of the mining project. The scandal directly involved former right-wing president Sebastián Piñera.
An investigation by Chilean media in the framework of the “Pandora Papers” revealed in 2021 indicated that the sons of the ex-president sold the Dominga mining company in 2010 to businessman Carlos Alberto Delano, a close friend of Piñera, for 152 million dollars, in an operation which mostly took place in the Virgin Islands.
This would explain why Piñera, when he took office, did not declare the area where the mining project would be implemented as an environmental protection zone.
Now in the government of one of Piñera’s main opponents, Gabriel Boric, the rejection of ‘Dominga’ is not only perceived by some analysts as an environmental fight, but also as a political revenge.
With Reuters, AFP, AP and local media
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