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2010 Chile Copper Mine Blast Reveals Regulation Gaps

9 May, 2011

An ICEM report from November 2010 told how inexperienced miners with no training detonated explosives on their first day of work inside the Los Reyes copper mine in northern Chile, killing 2. The incident happened only three weeks after the fabled rescue of 33 copper miners and only 70 kilometres from the San José mine in Chile’s Region II.

Now some rather startling facts have surfaced courtesy of an expose on Chile’s mine safety practices in the newspaper El Mercurio. As reported originally, the owner of the company, a Mexican national named Germán Zayas Bazán, fled Chile and within six hours of the 8 November explosion landed in Buenos Aires, Argentina, on a flight from Chile.

Germán Bazán was in Chile on a tourist visit. His whereabouts now are unknown and there has been no attempt to extradite him by Chile’s government, reportedly because the mine accident is still under investigation.

What is known is that on 15 September 2010, the Los Reyes mine was ordered by the National Service of Geology and Mining (SERNAGEOMIN) inactive. But Bazán somehow managed to get local authorities to reverse the order. At the same time, Bazán was openly advertising in Copiapó and elsewhere, seeking people to work long shifts for high pay, no qualifications required.

The deadly incident happened on the first day of work for three workers, ages 37, 26, and 21, were inside the mine. None had license to handle dynamite, they were without hard hats and mining lights, and the mine was without a fixed telephone line. El Mercurio reported that after the blast, Bazán drove the 21-year-old worker – who lost an eye from an exploding stone – to a hospital and then fled to the Copiapó airport.

In new light of safety ills that beset Chile’s mine industry, the SERNAGEOMIN inspector charged with overseeing the mine’s official closure was sacked and the regional director then resigned. Sill in question is how Bazán managed to acquire a deal to sell copper and other metals to Empresa Nacional de Mineria (Enami), a state-owned firm that processes and sells metals.

Separately from Los Reyes, SERNAGEOMIN has acknowledged that only 7%, or 27 of 394 small-scale mines in Region II are operating legally. Currently there is legislation drafted in Chile to reform SERNAGEOMIN. Part of the bill would institute a mining regulator that would be charged with overseeing exploration and mine development plans. The new regulator will have oversight on mine safety too.

In January, the Chile Mining and Energy Ministry did approve a 62% increase in the agency’s funding, which is expected to raise the number of mine safety inspectors across the country from 18 to 45. But with over 4,000 mining operations, that number is far too low and it is still too early to judge the effect revisions in the proposed legislation will have.