LUNMF - Lundin copper mine in Chile to remain closed after environmental court order

2023-06-09 08:36:15 ET

Lundin Mining ( OTCPK:LUNMF ) will be prevented from reopening its Alcaparrosa copper mine in Chile after the country's environmental court said Thursday that a temporary work stoppage was requested by government agency CDE, which has filed a lawsuit before the court against the company.

The lawsuit accuses Lundin ( OTCPK:LUNMF ) of environmental damage in connection with a sinkhole in Tierra Amarilla village in northern Chile.

Lundin ( OTCPK:LUNMF ) stopped work at the mine in July 2022 when the sinkhole appeared, and later announced a plan to gradually restart the mine over 18 months.

Environmental regulator SMA charged the company in October with overexploitation of mineral resources and unauthorized construction.

The regulator's charges could lead to a $13M fine plus the withdrawal of the mine's environmental permit.

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