The Chilean government has rejected a conciliation with local iron ore and copper producer Andes Iron to resume the banned Dominga iron ore project.
The court hearing was expected to allow the opposing parties to discuss the possibility of a deal. However, the Chilean Ministry of Environment declined to join the court hearing, making it difficult for Andes Iron to reach a deal over the banned $2.5 billion project.
A letter sent to a Chilean environmental court said the nation’s environment minister, Marcela Cubillos, was not interested in a conciliation.
The banned project expects to produce up to 12 million mt of iron ore. Chilean environment authority, SEA, was the first to reject the project. Then, Coquimbo’s environmental commission also banned it. More recently, in August last year, a minister council maintained the project ban. Since then, Andes Iron has been appealing and promised to bring it to higher courts, in an effort to resume the project.
Cubillos argued it would not contribute to strengthen the government duties to enter a conciliation process on the end of an existing case.