A Chilean court of appeals has issued a directive to halt the development of the 740MW Punta Alcalde hydropower project in the country.
The court ruled in favor of a plea logged by group of Huasco fishermen citing environmental concerns.
The Punta Alcalde plant, located in the Atacam region in Chile, will power the mining industry in the region and is being constructed by Spanish firm Empresa Nacional de Electricidad (Endesa), reported Hydro World.
The developer, meanwhile, contented that the development on the $1.4bn hydro project will not be halted given that it meets the current legislation applicable to this type of projects.
"Endesa Chile reaffirms to the public that the Punta Alcalde thermal project is one of the most efficient and environmentally modern projects in Latin America and it complies with current legislation applicable to this type of projects.
"Endesa Chile became a party to the appeal for protection and will provide, during the processing of the latter, all legal, factual, environmental and technical arguments that support the Punta Alcalde project’s environmental rating," said the company in a statement.