Chilean court revives $2.5B Dominga project permit

Chile’s Antofagasta Court of Appeals has suspended its own ruling against the $2.5 billion Dominga mining and port project, temporarily restoring its environmental permit and sending the case to the Supreme Court.

The lower court accepted an appeal from an independent workers union backing the project and referred the matter for a final decision, effectively reinstating Dominga’s Environmental Qualification Resolution (RCA) while higher judges review the case.

Andes Iron, the privately held Chilean company behind the project, has also filed claims against the February ruling in both the Supreme Court and the Environmental Court, where decisions remain pending.

Dominga, first submitted in 2013, would include two open-pit mines, North and South, and a port, with an estimated 26.5-year lifespan. The project is designed to produce 12 million tonnes a year of high-grade, low-impurity iron concentrate and 150,000 tonnes a year of copper concentrate. Andes Iron says it would create 30,000 jobs and meet strict environmental standards after years of review.

The site lies about 500 km north of the capital, Santiago, near the Humboldt Penguin National Reserve and other protected areas. Critics argue the development risks damaging sensitive ecosystems, a claim Andes Iron has repeatedly rejected.

Penguins and red tape: Chile says ‘no’ to $2.5bn Dominga mine again

The unusual reversal marks a procedural shift rather than a final approval, keeping the project in legal limbo after more than a decade of regulatory and judicial scrutiny. 

The Supreme Court’s eventual ruling will determine whether one of Chile’s most contested resource developments can proceed.

The case has moved through administrative, technical and judicial reviews, turning Dominga into a test of Chile’s ability to balance investment with environmental protection.