A Chilean local government environmental regulatory committee approved the environmental assessment report of Andes Iron's Dominga copper and iron ore project on Wednesday, giving the green light to the development of the $2.5 billion copper and iron ore project.
The commission had previously vetoed plans for the copper and iron ore project, but in April, a local environmental court injected new life into the project, ruling that the information provided by the company was reliable and asking regulators to reassess.
The Coquimbo Regional Environmental Regulatory Board voted in support of the project by a 11:1 vote on Wednesday, saying its environmental impact study met all legal requirements.
Analysts said it marked a rare victory for a major new project in Chile, the world's largest copper producer, and opened up new prospects for the country's large but aging mines.
The copper and iron ore project is about 500 kilometers north of the Chilean capital Santiago and close to an ecological reserve.
Critics point out that the project's proximity to environmentally sensitive areas could cause undue damage, and Andes Iron does not acknowledge these accusations.
Diego Hernandez, president of Chile's National Mining Association, an industry group that represents the interests of the country's largest miners, said the eight-year licensing process was "lengthy" but praised the final result.
However, he warned that further legal challenges promised by some critics could still hinder the project.
