The scandal that the Argentine ambassador to Chile, Rafael Bielsa, experienced last week with the government of that country has had as its axis of contention the Dominga mine, an iron and copper project, managed by the Chilean-owned company Andes Iron, which also includes a port, located 16 kilometers from the municipality of La Higuera, in the northern region of Coquimbo and about 500 kilometers from Santiago.

The project has been controversial for several years, even since Sebastián Piñera was president, due to the alleged selling stock in the mine to one of his best friends in an operation that would have materialized in the British Virgin Islands. Piñera denied the allegations and argued that there were no irregularities in the business.

But besides political issues, the reasons for the refusal of the mine by Gabriel Boric’s government have to do with environmental issues. The project is located near the Humboldt archipelago, which it protects one of the most important ecosystems in the world and where 80% of a penguin species livesas well as other 560 species of animals.

For this reason, the current Chilean government has canceled the multi-million dollar project which, according to Bielsa, could benefit Argentina. It is estimated that this mine it would have produced 12 million tons of iron and 150,000 tons of copper in 22 years per year and the creation of around 1500 jobs.

Regarding the matter, the Argentine ambassador regretted not having been informed of the decision because it was a project that was imported into Argentina -as he said- because would allow to strengthen the passage of Agua Negra through San Juan. “This enterprise was one of the alternatives that Agua Negra (a mountain pass) would have had as a port. It would be great for us if they warned us, nothing more. As it has an impact on bilateral relations, we wanted you to know about it.”She said.

The Andes Iron company belongs to the Chilean Délano Mendez family, made up of nine brothers who own 75% of Minera Dominga. This project it required an investment of $2.5 billion. The group also has financial, real estate and agricultural investments.

The family bought the project in 2010 from the LarrainVial group for just over 100 million dollars and invited some mining executives to participate in the venture, such as Iván Garrido, current CEO of Andes Iron, as well as the Garcés Silva family, who today it has 14%, according to the Chilean press.

The Chilean government had to rule on 12 complaints against this project. from society announced that it will appeal the Chilean government’s decision.

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