Chile: Government Warns Mining Companies: Water Use Authorisations In The North Have Reached Their L

Chile: Government Warns mining companies: Water Use Authorisations in the North Have reached their limits

By Eduardo Olivares La Tercera, Chile

November 7, 2005

ENGLISH SUMMARY: The availability water in underground reserves (aquifers), especially in Chile's North, is diminishing. In the region of Angofagasta, water-use permits are being suspended. "We are arriving at the limits of the sustainable use of the aquifers," says the head of the Department of Administration of Water Resources in the Direction General of Waters (DGA), Jaime Muñoz.

Water shortfalls will complicate matters for mining companies which are one of the main consumers of water For some months now, Collahuasi - run by Falconbridge and Anglo American, and El Tesoro belonging to the Luksic group, have been investigated by the regional commissons for the environment of Regions I and II, because of the ecological effects of their water extraction. Restrictions have been put on their operations. Cerro Colorado -- belonging to BHP Billiton -- has also been restricted for their alleged damages to the Bofedal de Lagunilla.