Lundin Mining needs to correct Alcaparrosa sinkhole

Executive Summary

• Lundin Mining received a decision in the Chilean State Defense Council’s civil claim against its subsidiary Minera Ojos del Salado concerning the July 2022 sinkhole at the Alcaparrosa mine.
• The decision mandates extensive remediation, including back‑filling the sinkhole, aquifer recharging, ongoing monitoring, transfer of groundwater rights, and water‑infrastructure projects for nearby communities.
• Mining operations at Alcaparrosa remain suspended; reserve estimates for the site have been removed from Lundin’s statements, while the Candelaria operation is unaffected and still projected to produce 140–150 kt of copper in 2025.

Key Details

• Decision Requirements: Ojos del Salado must (i) back‑fill the sinkhole, (ii) facilitate aquifer recharging, (iii) continue environmental monitoring, (iv) transfer specified groundwater rights, and (v) implement water infrastructure projects to improve rural potable water and wastewater systems for surrounding communities.
• Operational Impact: Alcaparrosa mine has been non‑operational since the July 2022 sinkhole; its mineral reserve estimates were removed from Lundin’s reserve statement and are excluded from future production guidance.
• Financial/Production Outlook: No immediate financial impact disclosed, but the suspension of a major copper asset may affect long‑term cash flow and earnings forecasts.
• Candelaria Mine: Remains operational; forecasted 2025 copper production of 140,000–150,000 tonnes.
• Company Response: Lundin has cooperated with sectoral regulators by providing monitoring technology, studies, and expert input to ensure sinkhole stability and will work with authorities to clarify remediation timelines and next steps.

Notable Quotes

(No direct quotes were provided in the release.)