Chile's iron ore project will start at the end of 2021

El Dia media reported that Chilean iron ore company Andes Iron will start a $2.5 billion project by the end of 2021 if it gets permission from the court.

This project called Dominga has suffered a lot of setbacks and is awaiting court approval. Recently, the court ordered the Chilean Ministry of Environment to give clear instructions on whether the project is "compatible" with the biodiversity of Coquimbo Bay.

This so-called $2.5 billion project aims to produce 12 million tons of iron ore annually. The El Dia media report pointed out that the project may be the largest in the region and will help Chile resume unemployment caused by the new crown epidemic.

The local environmental regulator SEA rejected the project for the first time in March 2017. Subsequently, the Environmental Committee of the Coquimbo District also banned the project, and in August 2017, a ministerial meeting upheld the ban on the project. Since then, Andes Iron has appealed the case.

In May 2018, an environmental court ordered the project to be re-evaluated. Then a Chilean non-profit organization requested that the project be banned. However, the Chilean High Court refused.

Affected by the recent setbacks, Andes Iron has admitted that it will abandon its original plan to build a port near the Dominga mine in order to allow the iron ore project to continue.