ESG

S32 appeals Cerro Matoso ruling

Court rules company must pay damages, reapply for licence

Staff reporter

This article is 6 years old. Images might not display.

The court found in March that the mine's waste emissions had affected neighbouring communities, with some members diagnosed with heart and lung problems including cancer, and some had high levels of nickel in their blood and urine, Reuters reported.

The court ordered South32 pay damages and reapply for its mine licence.

The company said today it had been notified of the decision on Monday and was in the process of appealing it.

"At this stage it is not possible to fully assess any potential financial or operational impacts, as the decision orders various compensatory and remedial activities which are not yet quantifiable," South32 said.

"Our work is continuing to understand the impact of the decision and we will advise of any material developments."

The three-year-old BHP spin-off said it was committed to contributing positively to communities where it operated.

Cerro Matoso's nickel production increased 23% to 21,800 tonnes in the second half of 2017 and generated US$244 million in revenue.

It is expected to produce 41,600 tonnes in FY18.

South32 shares were down 2.4% in midday trade to A$3.395, valuing the company at $17.91 billion.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.