The Andes Iron-owned $2.5bn (1.95trn pesos) Dominga iron and copper mining project in northern Chile could face Supreme Court scrutiny following the annulment of an environmental permit denial for the project in 2023 by a local tribunal, the Environment Minister Maisa Rojas said, as reported by Reuters.

The environmental court First Environmental Tribunal, overseeing the Coquimbo region, ruled that the project should be re-evaluated by a panel of ministers not compromised in their impartiality and administrative integrity.

The project has been a focal point for environmental debates in Chile, the world's leading copper producer.

A government review committee denied a key environmental permit for the Dominga mine in January 2023, but the decision was overturned by a Chilean environmental court.

The court ordered the committee to reassess the project within 15 days, criticising the initial review for lacking impartiality.

Maisa Rojas said: "This is a decision that may still be considered by the Supreme Court, and we cannot refer to the substance of the matter because it is a pending process."

The Dominga project, located 500km north of Santiago, has been contested due to its proximity to ecological reserves, raising concerns about potential environmental damage.

Andes Iron maintains that the project meets all environmental regulations and requirements, despite ongoing opposition from environmental groups.

Initially, Andes Iron obtained the approval of a regional Chilean environmental commission for the Dominga copper-iron project in August 2021.

Iron, copper and gold deposits in the commune of La Higuera, Coquimbo region, were discovered in 2006, which followed the purchase of the Dominga project by Andes Iron from Mineria Activa.