• Marimaca Copper has received environmental approval (DIA) for its oxide copper project in northern Chile, marking a significant de-risking milestone after years of preparation and stakeholder engagement
• The company submitted a Declaration of Environmental Impact (DIA) rather than an Environmental Impact Assessment (EIA) because the project does not generate “significant environmental impact” across 17 technical review categories
• The approval process involved a rigorous 4,800-page submission reviewed by 17 government agencies, with the company designing the project around environmental sensitivities rather than retrofitting environmental considerations
• Marimaca expects to break ground by end of Q1 2026 after obtaining remaining sectoral permits, which are considered lower risk than the primary environmental approval
• The company sees favorable copper market fundamentals for the next 5-10 years and believes it is bringing a new project to market at exactly the right time

Marimaca Copper has achieved a critical development milestone with the approval of its Declaration of Environmental Impact (DIA) for the Marimaca oxide copper project in northern Chile. This approval represents years of strategic planning and positions the company as a permitted copper developer ready to advance toward construction. The achievement comes at a time when Chile’s regulatory environment is becoming more supportive of mining development while maintaining strict environmental standards, and as copper market fundamentals appear increasingly favorable for new supply.

Understanding Chile’s Dual-Track Environmental Approval System

Chile operates a sophisticated environmental permitting framework that distinguishes between projects based on their environmental impact. Jose Antonio Merino, Marimaca’s Managing Director for Chile and CFO, explained the fundamental distinction: 

“The system in Chile aims for a zero or close to zero environmental impact from a project. So you have to do your environmental assessment, and if your project produces what is called a significant environmental impact, you have to go through an EIA.”

The alternative pathway, which Marimaca pursued, is the DIA. The company conducted extensive analysis across multiple environmental variables to determine that the project would not generate significant environmental impact, thereby qualifying for the DIA pathway.

This distinction matters significantly for project timelines and approval complexity. While both processes are rigorous, the DIA pathway typically offers a more streamlined approval process for projects that can demonstrate minimal environmental impact through careful design and site selection.

Technical Rigor Behind the Approval

The approval process was anything but perfunctory. Merino revealed that the company’s DIA submission comprised 4,800 pages and underwent review by 17 separate government agencies, each examining the project through their specific lens. 

“In our case, there were 17 technical agencies reviewing our environmental submission, and each of those agencies would review that in their scope of work: does this project generate what is called a significant environmental impact?”

These agencies covered diverse areas including water resources, flora and fauna, air quality, archaeology, and community impact. Each agency applied what Merino described as “a very fine lens” to the submission. 

The technical review examined everything from potential water course impacts during heavy rainfall to effects on specific flora species found on site. This comprehensive approach ensures that environmental protections remain stringent even within the streamlined DIA framework.

Strategic Project Design Through Environmental Sensitivity Mapping

One of Marimaca’s key strategic decisions was to design the project around environmental sensitivities from the outset, rather than retrofitting environmental considerations after engineering work was complete. Merino identified this as a critical lesson: 

“We mapped the environmental sensitivities and we designed our project around these environmental sensitivities.”

This approach required additional upfront work and delayed the company’s original submission timeline by approximately one quarter. However, it proved instrumental in securing approval. The company also benefited from favorable baseline conditions. 

Water supply presented a particularly sensitive issue in northern Chile’s arid environment, prompting the company to develop sustainable solutions early in the planning process. This proactive approach to addressing key environmental challenges helped position the project for regulatory success.

Interview with President & CEO, Hayden Locke & Jose Antonio Merino, Managing Director, Chile & CFO

Community Engagement Beyond Regulatory Requirements

Beyond technical compliance, Marimaca pursued an extensive community engagement strategy despite no regulatory mandate to do so. Merino described the approach: 

“We decided early on to be very proactive. This was not mandatory. We were not obliged to go and speak with the communities, but obviously it’s important for us to develop a good relationship with the community of Mejillones.”

Rather than presenting the community with a fait accompli, the company opened a dialogue asking: “What is your expectation as a community? What are your concerns as a community around this project?” This feedback was then incorporated into a community engagement plan. Merino suggested this proactive stance influenced the regulatory review process: “When the authority sees that the company is doing all these things, I would tend to think that they have a different mindset when reviewing and allowing this project to smoothly move forward.”

This voluntary community engagement reflects the company’s broader commitment to ESG principles, even as Merino acknowledged that “these three letters are used in some ways.” The company placed environmental and social standards at the core of its business development strategy, recognising that technical compliance alone is insufficient for sustainable project development.

Chile’s Shifting Political Climate Toward Mining Development

The approval comes amid a notable shift in Chile’s political and regulatory climate regarding mining development. Merino observed: 

“There is more consensus in the Chilean political and regulatory agencies about the importance of economic growth. This consensus wasn’t here four or five years ago. There was more of an environmentalist wave impacting these processes.”

The country experienced significant political turbulence in recent years, including constitutional reform debates that raised questions about the balance between environmental protection and economic development. However, Merino indicated the pendulum has swung toward recognising that both objectives can be pursued simultaneously: People realise that you can achieve both: protect the environment but also allow mining projects and projects in general to develop.

This doesn’t mean standards have been relaxed. Merino emphasised repeatedly that the process “is still a very strict process to go through” with “certain bottlenecks in terms of the environmental approval and permitting approval that the system in general is trying to solve.” However, the political will to support economic growth through mining development has strengthened, creating a more balanced regulatory environment.

Sectoral Permits Timeline Before Construction Commencement

While the DIA approval represents the most significant permitting hurdle, additional “sectoral permits” remain before construction can commence. Merino explained: 

“The permitting environment in Chile is not just the RCA [environmental approval] but also the future, what we call sectoral permits, and there are a few ones that we need to be able to break ground.”

These permits address more technical engineering matters, such as water crossing specifications to ensure no flooding or related issues occur. Merino characterised these as lower risk: “In terms of the risk of getting it is very low. All these sectoral permits are granted eventually, but it’s important to focus and continue working very hard in getting all these permits.”

The company expects to break ground by the end of Q1 2026, assuming successful completion of the sectoral permitting process. This relatively near-term timeline represents significant progress for a junior mining company advancing a development project.

Market Context in a Favorable Copper Cycle

Presidenmt and CEO Hayden Locke acknowledged an interesting market dynamic regarding the approval: 

“Given the history in the mining space of junior companies being delayed, in some cases by two decades, by permitting issues, it should be one of the most significant de-risking milestones that we’ve achieved as a company.”

Looking at broader market conditions, Locke expressed optimism about copper’s medium-term outlook: 

“I think overarchingly the next 5 to 10 years in copper is going to be very favorable, and we are coming to market with a new project at exactly the right time.”

The Investment Thesis for Marimaca Copper

• De-risked Development Asset: Environmental approval eliminates the single largest permitting risk for the Marimaca oxide project, with remaining sectoral permits considered low-risk and routine, positioning the company for construction start by end of Q1 2026
• Favorable Market Entry Timing: Company advancing toward production as copper market fundamentals strengthen, with management forecasting favorable conditions for the next 5-10 years driven by supply constraints and growing demand from electrification and energy transition
• Proven Execution in Challenging Jurisdiction: Successfully navigated Chile’s rigorous environmental review process involving 17 government agencies and 4,800-page submission, demonstrating operational capability and understanding of local regulatory environment
• Strategic Project Design: Unlike many projects that retrofit environmental considerations, Marimaca designed the project around environmental sensitivities from the outset, reducing future operational and regulatory risks while building community support
• Well-Capitalised Development Pipeline: Recent capital raise provides funding to advance through sectoral permitting and toward construction, with market endorsement of the company’s development plan and management team
• Exploration Upside Potential: Ongoing high-grade exploration program at satellite projects provides additional resource growth potential beyond the permitted oxide project, offering exploration optionality alongside development execution
• Strong Stakeholder Relationships: Proactive community engagement and established relationships with regulatory authorities de-risk future permitting requirements and support long-term operational sustainability

Macro Thematic Analysis

The copper market is entering a period of structural tightness as demand from electrification, renewable energy infrastructure, and electric vehicles accelerates while new mine supply struggles to keep pace. Chile, which produces approximately one-quarter of global copper supply, plays a critical role in addressing this supply gap. However, the country’s mining sector has faced challenges including declining ore grades at mature operations, water scarcity in northern mining regions, and periods of regulatory uncertainty.

Recent shifts in Chile’s political environment suggest a more balanced approach that recognises mining’s economic importance while maintaining environmental standards. This creates opportunities for well-designed projects that demonstrate genuine environmental consideration rather than viewing compliance as a checkbox exercise. Projects like Marimaca that can navigate the permitting process efficiently while building community support are increasingly valuable.

The oxide nature of Marimaca’s deposit offers additional advantages, including simpler metallurgy, lower processing costs, and faster production ramp-up compared to sulfide projects requiring concentrate production and smelting. These characteristics align well with market timing, allowing the company to bring production online relatively quickly to capture favorable pricing while contributing to supply that the market urgently needs.

TL;DR

Marimaca Copper has secured environmental approval for its Chilean oxide copper project, marking a critical de-risking milestone after years of strategic planning and rigorous regulatory review by 17 government agencies. The company expects to break ground by end of Q1 2026 following routine sectoral permits, positioning it to enter production as copper market fundamentals strengthen over the next 5-10 years. Management’s proactive approach to environmental design and community engagement, combined with Chile’s evolving regulatory support for mining, differentiates this permitted development asset in a market hungry for new supply.

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