SMM, Feb. 20: Chilean Environmental Regulatory Agency (SMA) on Tuesday charged Lumina Copper with violating the terms of the environmental rating resolution (RCA), including the Caserones mine and power transmission line development project.

The agency said the charges against Lumina included the miner's failure to provide information required by the SMA in connection with some of the compliance with last year's order, which instructed the company to take mitigation measures to prevent contamination of groundwater supplies.

Eleven of the 18 violations found by SMA at Caserones are considered "serious", meaning Lumina may have to give up its environmental permits, face short-term or permanent closure of mines, or pay multimillion-dollar fines.

The agency said, Lumina Copper Chile had 10 days to propose mitigation plans and 15 days to respond to the allegations.

This is not the first time the agency has fined Lumina. In 2015, SMA ordered Lumina to pay $11.9 million in violation of environmental regulations. At the time, it was SMA's second-highest fine since it was founded in 2012.

Caserones is located 4200 meters above sea level to 4600 meters above sea level in the Atacama desert region, near the Argentine border. The mine is operated by Lumina and run by JX Holdings Inc. Pan Pacific Copper, which is controlled by JX Nippon Mining&Metals, has a 77 per cent stake. Japanese trading company Mitsui&Co Ltd holds the rest.

Since production began in May 2014, the copper mine has been behind schedule, not only being hit by fines and a series of technical problems during its acceleration phase, but also making it costly for Japanese miners.