Chile's Supreme Court halts Origin-Xstrata hydro project

Chile's Supreme Court has halted construction of the 640MW Energia Austral hydroelectric project, which is under development by a joint venture of Australia’s Origin Energy and Switzerland’s Xstrata Copper.

The court's decision comes after environmental groups filed a petition against the scheme, saying it will wreak havoc in the region's pristine wilderness.

A regional environmental review commission had approved the $733m project – located 45km northwest of Puerto Aysén in Chile's remote Patagonia region.

The court accepted the environmentalists' appeal and ruled the commission had ignored a recommendation from the national geology and mining service to reject a soil survey done by the joint venture.

It ordered that a new soil survey be carried out before a new vote on approval of the Log in to read complete article.

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