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BHP Group to ramp down Chilean copper mine after court's water extraction ban

BHP Group will ramp down its Cerro Colorado copper mine in Chile to mitigate the impact of a court ruling that prohibited the company from extracting water for the operation, Reuters reported Jan. 5.

The mining giant plans to adapt the Cerro Colorado mine and will close one of the plants at the site while limiting operations at remaining facilities. A significant amount of workers will take their vacations early, and others will work remotely.

"Cerro Colorado recognizes that the new measure will have an impact on operations and on its entire value chain," BHP Group was quoted as saying. "The adopted measures make it possible to face the contingency in a responsible manner. The final decisions are expected to be evaluated in the coming days in light of new information available."

The First Environmental Court in the Chilean city of Antofagasta ordered BHP Group last week to stop drawing water from the Lagunillas aquifer for an additional 90 days. The move followed the court's September 2021 decision to suspend the ban for 90 days while an environmental review of the project is ongoing.

BHP Group secured a permit last week that would allow it to keep the mine online until the end of its environmental license in 2023. The company is waiting for the court to reconsider its latest decision, the report said.