The long-running controversy around Andes Iron’s US$2.5 billion Dominga iron ore and copper mining project in Chile has hit a fresh hurdle after a court ruling effectively put the development back into legal limbo.
On Saturday, the Antofagasta Court of Appeals unanimously annulled a previous favourable ruling by the First Environmental Court that had ordered Chile’s Committee of Ministers to hold a fresh vote on the proposed mine and associated port in the central Coquimbo region. The appeals court found the earlier decision to be procedurally flawed and therefore inadmissible, without addressing the underlying merits of the Dominga project itself.
The ruling means the case will return to the Committee of Ministers, which has already rejected the project on three separate occasions, most recently in January last year. Andes Iron appealed that rejection, and in September the Supreme Court revived the project and instructed ministers to vote again — a directive that has now been stalled by the latest court action.
First proposed in 2013, Dominga would comprise two open-pit mines — North and South — and a port facility, with an anticipated operational life of roughly 26.5 years. The project is designed to produce about 12 million tonnes per year of high-grade iron concentrate and up to 150,000 tonnes per year of copper concentrate, potentially creating thousands of jobs and contributing to Chile’s mining exports.
Its proximity to ecologically sensitive areas — including the nearby Humboldt Penguin National Reserve — has made Dominga a flashpoint in debates over resource development and environmental protection. Environmental groups and government officials have repeatedly opposed the project, citing risks to biodiversity. Supporters argue the venture meets regulatory standards and would bring economic benefits to the region.
The latest legal setback underscores the complex regulatory and judicial landscape facing major mining investments in Chile and casts uncertainty over the timing and viability of Dominga’s future development.