Environment & Social

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Environment & Social

ENVIRONMENTAL STUDIES

Baseline surveys have been conducted since 2012 and continue for the preparation of the Costa Fuego Environmental Impact Assessement (EIA).

Since 2022, 7 Seasonal baselines (including flora and fauna surveys) have been completed across winter, spring, autumn and summer seasons.
In total 16 environmental components including archaeology, landscape, palaeontology, human environment, geomorphology, and natural risks have been surveyed.
Completion of these surveys has involved 60 professionals, working across an area of 11,000 ha

Environmental-Studies

ENVIRONMENTAL SETTING

Costa Fuego is located in two Koeppen climate classifications: BWh (dry arid desert hot) and BWk (dry arid desert cold). The biggest difference between both climates is the maritime influence in BWh, that generates frequent episodes of high humidity throughout the year, creating abundant cloudiness that penetrates from the coastal area and through the Huasco river valley near Costa Fuego.

Regarding geomorphology, the Project is located in a transition zone between the desert plains and pre-altiplanic mountain ranges and coastal plains. This presents as a rocky and mountainous desert landscape with sparse vegetation (cacti, xerophytic flora) typical of the coastal desert.

No permanent or seasonal courses of water are observed in the area, however sporadic water courses superficially flow after heavy rains.

Geomorph-Picture

ENVIRONMENTAL STUDIES SPOTLIGHT | TAILINGS STORAGE FACILITY

As part of the PFS, Hot Chili engaged specialists to conduct environmental studies and engineering design for the tailings storage facility. Works completed included:

Hydrogeological classification and modelling of the TSF at Productora
Expansion of the hydrology monitoring network to include bores across the TSF basin
Geophysical surveys
Geochemical analysis of the tailings products, including ARD assessment
ARD assessment of the construction materials for the embankments
Engineering and design of the TSF, including risk assessment, to international standards ANCOLD and GISTM

Environmental studies and engineering designs are continuing for TSF solutions at Costa Fuego

TSF Design delivered in PFS (March 2025)

AIR QUALITY MONITORING NETWORK

Given the location of the Costa Fuego Project in an arid desert environment, the potential effects of air quality degradation due to mining activities - particularly from dust generation during drilling, blasting, and hauling operations - has been identified. Baseline air quality measurements were taken across nine monitoring stations set up within and around the Project area to establish pre-development levels of particulate matter (PM10 and PM2.5) and other potential airborne pollutants (SOx and NOx gases).

AIR QUALITY MONITORING NETWORK

HYDROLOGICAL MONITORING NETWORK

The Costa Fuego hydrogeological monitoring network includes standpipe piezometers, open boreholes and surface seepage or shallow wells.

The baseline water quality studies measure parameters such as water levels, pH, total dissolved solids (TDS), and heavy metal concentrations in both surface and groundwater sources.

Hydrology-Network

ACID ROCK DRAINAGE (ARD)

ARD, also known as Acid Mine Drainage, can occur when sulphide minerals are exposed to air and water and the mineral leaches a liquid with low pH and elevated dissolved metals. The arid environment of Costa Fuego naturally reduces exposure to ARD formation, nevertheless studies are undertaken to fully understand the ARD potential.

ARD Prediction

122 samples were reviewed for the PFS at Costa Fuego, with a further 122 samples undergoing laboratory tests. Sulphide bearing rocks that have the potential to cause ARD have been modelled and can be reliably predicted and managed.

ARD Prevention

Preventing ARD liquids from entering the environment through surface and ground water is the key control in protecting the environment from ARD. At Costa Fuego prevention measures include:

ARD sampling and predictive modelling
Minimising contact with water, through the use of surface water drainage management
Containing any produced ARD liquids, through the use of contact water ponds
Protective liners under intentially wet features, like leaching pads and wet areas of the tailings storage facility

SOCIAL ENGAGEMENT

SOCIAL BASELINES

Over 100 organisations have been surveyed across the Vallenar, Freirina, and Huasco townships in relation to Costa Fuego

EARLY COMMUNITY PARTICIPATION

The "Participación Ciudadana Temprana" (PCT) - translating to early citizen participation - is an program defined within the EIA system for the early communication of the project to the community. Hot Chili commenced it's PCT in 2024 with the delivery of

Information Booths
Public Presentations
Project Workshops

INDIGENOUS COMMUNITIES EARLY ENGAGEMENT

The first phase of Indigenous engagement is the identification and contact with Indigenous Communities relative to the project. Hot Chili have begun this relationship building process.

As the project progresses through the EIA permitting process, opportunities for formal agreements between the Indigenous Communities and Hot Chili become available.

SOCIAL IMPACT ASSESSMENT

Costa Fuego is being prepared under the Chilean EIA system. The EIA includes a social impact assessment, and several stakeholder consultation and engagement processes.

COMMON QUESTIONS

How much ground water are you drawing for the exploration activities?

Hot Chili has never drawn ground water from the aquifer to support its exploration activities.

Hot Chili purchases fresh water, and drills using a closed circuit system to recover and reuse this water.
What is the Costa Fuego project?

Read more about Costa Fuego on our project page or in the PFS Infosheet below
READ THE INFOSHEET
What minerals are at Costa Fuego?

The main economic mineral is chalcopyrite, a sulphide containing copper.

The deposit contains other economic elements such as gold, silver and molybdenum which are included within the "copper equivalent" calculation used to describe the value of the deposit.
Who can I contact to find out more?

The Contact Us form on this website will submit your query through to the Hot Chili team.

Members of our community are encouraged to view the Community page which includes contact information for our community liason officer in Vallenar.