CA - Lundin Mining hit with charges over sinkhole at Chilean mine

Chile's environmental regulator SMA filed four charges against Lundin Mining ( OTCPK:LUNMF ) Thursday related to a giant sinkhole that appeared in July above the company's Alcaparrosa underground copper mine.

SMA said the main infractions are related to extraction of ore beyond the permitted limits and construction outside of environmentally approved zones, following an investigation that linked the sinkhole with ore overextraction.

"When the event occurred, large amounts of water began to leak into the mine from places where the company intervened beyond what was considered in the environmental assessment," SMA said.

The company risks fines equivalent to more than $13M, closure of the mine, or having its environmental permit revoked.

Lundin ( OTCPK:LUNMF ) owns 80% of the property, while the remaining 20% is held by Japan's Sumitomo Metal Mining ( OTCPK:SMMYY ).

Lundin Mining ( OTCPK:LUNMF ) is a well managed company and its stock is cheap, GoldStreetBets Research writes in an analysis published on Seeking Alpha .

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