Significance of the Case
From the beginning, the Pascua Lama project has been highly controversial due to concerns related to the project’s impact on the environment and human rights. The Supreme Court resolution confirming the decision by the Court of Appeals is important, because, for the first time, a project under construction involving investments for more than 5 billion dollars was stopped until certain conditions related to preventing water pollution and other human rights violations are met. It is also significant that the Court of Appeals based its decision on the failure to comply with the Environmental Assessment Resolution and the “threat” posed by such failure to comply on the environment and the health of the population, without seeing the need for verifying the actual existence of pollution.
The Court adopted a broader view of the environment and acknowledged the fact that the impact goes beyond a specific community and covers future generations, stating the need to ensure sustainable development.
The Court also recognized the indivisibility of life, health and the preservation of nature.
The project’s halt has caused the company major losses and, consequently, problems with its shareholders, setting a precedent on the importance of fully complying with environmental regulations.