BHP Billiton will transform Cerro Colorado Copper Mine after a court ruling on water use

BHP said it would adjust its Cerro Colorado copper mine in Chile to reduce the impact of a recent court ruling that prevented it from drawing water for its business while it was waiting for the court to reconsider the decision.

BHP Billiton said last week that it had received approval from a committee to continue to operate the mine and that its environmental permit was valid until the end of 2023, but it was still awaiting a ruling from the first Environmental Court in the northern Chilean city of Antofagasta.

On Friday, BHPB.L said the court had decided to issue a new measure banning it from drawing water from the Lagunillas aquifer for another 90 days, or until the court determined that there was no risk of damage to Cerro Colorado, which will produce 68900 tonnes of copper in 2020.

"Cerro Colorado recognizes that the new measures will have an impact on operations and its entire value chain." BHP Billiton said in a statement Tuesday, adding that it would adjust its operations.

Initially, BHP will stop one plant at Cerro Colorado and restrict the operation of the rest to some extent. It will also give a group of "important" workers leave ahead of time, while others will work from home.

"the measures taken make it possible for us to face emergencies in a responsible way. The final decision is expected to be evaluated in the coming days on the basis of new information available," it added.