Kinross Gold could be forced to halt its Maricunga gold mine in northern Chile after authorities ordered the closure of water wells which supply the operation, the company said Monday.
Kinross said the Maricunga mine, which produced 212,155 oz of gold in 2015, continues to operate normally, but warned that the Pantanillo wells were its only source of fresh water.
Environmental regulator SMA issued the order Friday after uncovering significant damage to the high-altitude Pantanillos wetland, which is home to numerous vulnerable species of flamingos, llamas, and other animals.
In a statement, the mining company fingered a protracted drought in the desert region "that is unrelated to [Kinross]'s operations" for the drop in groundwater levels, and said it would fight the decision before Chile's environmental court, which must approve the SMA's order before it can be enforced.
