Chile extends suspension at Gold Fields mine amid Chinchilla relocation

Chile's Superintendence of the Environment (SMA) extended the suspension of rock dismantling activities at Gold Fields' Salares Norte project to protect the local chinchilla population.

Last month, the environmental agency barred Gold Fields from dismantling rock at area number 3 at the mine site, located in the Atacama mountain range, after it concluded the miner did not comply with the rescue and relocation plan for the chinchillas in the area.

SMA has extended the suspension, temporarily halting activities for 120 days starting June 5. 

In March, Salares Norte delivered its first gold. The project has taken 13 years to bring into production from discovery, with the local chinchilla population proving a particular hurdle over the years. Salares Norte is expected to produce 220,000-240,000oz gold equivalent at a cost of US$1,840-2,010/oz this year.

In 2020, Gold Fields started an initial rescue operation for the rodents, but efforts were put on hold after two of four chinchillas caught for relocation died. The authorities recently gave the miner permission to start its relocation efforts again.

Gold Fields' chief executive, Mike Fraser, said earlier this month during a conference call that no chinchillas have been captured since restarting the program. However, SMA said that documentation from Gold Fields did not prove the rodents' absence.

"This species is classified as Critically Endangered, so any operation must be carried out to guarantee its protection," Superintendent Marie Claude Plumer said. "This, also considering that its protection is part of the measures that the owner committed to within the framework of its environmental evaluation."

Plumer added that it is "important to remind project owners that environmental compliance is an obligation and part of the rules".

Gold Fields will have to provide weekly evidence that it did not continue its dismantling activities at the site.