ANFGF - Antofagasta falls as Chile committee votes to end water rights for mines

Antofagasta (OTC:ANFGF -5.7%) plunges in London trading after an environmental committee approved a proposal to annul water rights granted to Chile's private sector. The plan would require mines, agribusinesses and utilities to seek temporary permits to use water in a new model that prioritizes human consumption, the sustainability of water reserves and indigenous rights, Bloomberg reports. The committee vote is just a first step, as enactment would require a two-thirds majority by the full assembly before becoming part of a draft charter that will go to a referendum later this year. The news highlights "lingering uncertainties" around regulation faced by Antofagasta, although the Chilean miner's water rights risks are manageable, Morgan Stanley analysts say, according to Bloomberg. Antofagasta's proposed Twin Metals copper and nickel mine in Minnesota recently was effectively terminated after the Biden administration canceled two mineral leases.

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Antofagasta falls as Chile committee votes to end water rights for mines