The mysterious 36.5-meter-diameter hole that appeared in late July sparked local protests and prompted the mining regulator to suspend operations at a nearby mine owned by Canada’s Lundin ( LUN.TO ) in the northern district of Candelaria. “We will go all the way with consequences, for sanctions, not just a fine,” Mining Minister Marcela Hernando said in a press release, adding that fines tend to be minor and the decision should be “exemplary” for mining companies. Sign up now for FREE unlimited access to Reuters.com Register Chilean authorities have not released details of the investigation into the cause of the sinkhole. Local and foreign media showed various aerial images of the huge hole in a field near the Lundin mining operation, about 665 kilometers north of the Chilean capital. Originally, the hole, near the town of Tierra Amarilla, was about 25 meters (82 ft) in diameter, with visible water at the bottom. read more The Canadian company owns 80 percent of the property, with the remaining 20 percent held by Japan’s Sumitomo Metal Mining Co Ltd ( 5713.T ) and Sumitomo Corp ( 8053.T ). The minister added that although the country’s mining regulator had carried out an inspection of the area in July, it was unable to detect this “overexploitation”. “This also leads us to believe that we need to reframe what our inspection procedures are,” he said. Sign up now for FREE unlimited access to Reuters.com Register Report by Fabian Andres Cambero. Carolina Pulice writes. Editor: Leslie Adler Our Standards: The Thomson Reuters Trust Principles.
