Chile Environmental Authority Aiming to Shut Down Kinross's Maricunga Mine

Kinross Gold (TSX:K) reported that its subsidiary, Compañía Minera Maricunga, had received a notification from Chile’s environmental regulatory authority (SMA) that the regulator would seek to require CMM to close the Maricunga mine’s water pumping wells. The company is reviewing the SMA’s resolution for legal action.
As quoted in the press release:

Kinross is committed to responsible environmental management. CMM has taken numerous measures and performed various studies over the years to understand the causes of the current situation and mitigate, as appropriate and permitted, any impacts of its water use. Kinross wishes to also underscore that the Atacama Region has suffered from a protracted drought for many years, resulting in a drop in groundwater levels across the region that is unrelated to CMM’s operations.
CMM only recently received the resolution and will review it thoroughly with its legal counsel. CMM will respond within the periods allowed by law, and intends to file an appeal with the appropriate Environmental Tribunal. CMM disagrees with the allegations on which the resolution is based, and intends to defend itself vigorously. As noted by the SMA in issuing the resolution, procedurally the closure order of the pumping wells must still be presented to and upheld by the Environmental Tribunal in Santiago. In addition, the SMA has publicly stated an intention to seek an expedited injunction. CMM similarly intends to vigorously oppose this unprecedented action by the SMA.
The Maricunga mine continues to operate normally but relies solely on water from Pantanillo wells to support its operations.

Click here for the full press release.