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Mining, Water Crisis, and Indigenous Rights in Atacama, Chile

18 Jul 2025 GS 1 Geography
Mining, Water Crisis, and Indigenous Rights in Atacama, Chile Click to view full image

Context:

The Atacama Desert in northern Chile, known as the driest place on Earth, is facing a severe ecological and humanitarian crisis due to extensive copper and lithium mining operations and a 15-year-long mega-drought. Despite the shift toward desalinated seawater, Indigenous communities argue that the environmental damage is irreversible.


Key Issues:

  1. Mining and Water Stress:

    • Mining giants such as BHP (Escondida Mine), Albemarle, and Zaldívar have historically extracted groundwater for operations.

    • Over-extraction has led to a drop of over 25 cm in water tables, affecting wetlands, springs, vegetation, and biodiversity in the Monturaqui-Negrillar-Tilopozo aquifer.

  2. Impact on Indigenous Communities:

    • The Lickanantay de Peine Indigenous community has witnessed destruction of grazing lands and local water ecosystems.

    • Environmental degradation has disrupted traditional livelihoods and cultural practices.

  3. Desalination: A Double-Edged Sword:

    • Mining firms have shifted to desalinated seawater (approx. 30% of water used in mining now).

    • However, desalinated water does not reach Indigenous lands and has ecological costs:

      • High CO₂ emissions (projected 700,000 tonnes CO₂e/year by 2030).

      • Brine discharge harming marine biodiversity, especially near Antofagasta.

  4. Regulatory and Judicial Actions:

    • In Dec 2024, Chile’s environmental court fined companies $47 million for unsustainable groundwater depletion.

    • A prior $8.4 million fine on Escondida was upheld.

  5. Green Paradox:

    • Chile is a major global supplier of copper (13%) and lithium (80% of EU imports).

    • These minerals are crucial for the global green transition (EVs, renewables), yet their extraction worsens local ecological and cultural degradation.


Important Locations:

  • Atacama Desert: Driest region on Earth, with sensitive salt flat ecosystems.

  • Escondida Mine: World’s largest copper producer, located in the Andes.

  • Peine: Indigenous Lickanantay community settlement within salt flats.

  • Monturaqui-Negrillar-Tilopozo Aquifer: Over-exploited groundwater source.

  • Coloso, Antofagasta: Location of BHP's largest desalination plant.

  • Antofagasta (Port & Coast): Site of brine discharge, affecting marine life.


Other Important Facts :

ElementDetail
Mega-DroughtLongest in Chile in 100 years; 15 years ongoing.
Biodiversity ThreatsWetland vegetation loss, marine species decline (fisher testimony).
Desalination Dependence75% of Chile’s desalination capacity used by mining.
CO₂ ImpactDesalination CO₂ emissions may equal Antigua & Barbuda’s emissions by 2030.
Green Transition DilemmaClean energy minerals sourced via ecologically damaging processes.
Indigenous RightsCourt acknowledged violation of traditional ways of life and ecosystem dependence.

UPSC Syllabus:

  • GS Paper I: Geography – Desert ecosystems, water stress.

  • GS Paper II: Governance – Indigenous rights, environmental justice.

  • GS Paper III: Environment & Economy – Climate change, resource extraction vs sustainability, energy transition.

  • Essay/Ethics: Development vs Environment, Ecological Rights, Cultural Survival.



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