International Railroad Discussion > Line closures in Chile

Will throw this open, lot of conflicting stories

Information from Chilean press, and monitoring employees Facebook pages

Chanaral-Diego de Almagro-Potrerillos. This line is closed. Roughly 40 km of track in the river valley down to Chanaral simply disappeared in the March 2015 flood, same with the line east of Llanta where it clings to the cliff face, kilometres of the ledge originally dug out for the line were removed by water cascading down the mountain sides. Massive pollution and toxic residue west of El Salado, millions of tons of mine dump, mainly from the 1880-1950 era was scoured out and dumped in the Rio Salado, which has compounded the existing problem. Chilean authority has put this in the too hard basket
http://ocean71.com/economy/chanaral-chile-pollution-copper-metal-mine-beach-pacific/
The quoted price for a patch-up job on this system is US$50 mil+, the Salvador mine is currently loosing close to US$4 per lb. Operation is now all truck, and is working efficiently over rebuilt roads
http://www.reuters.com/article/2015/09/07/chile-copper-codelco-idUSL5N1194WR20150907
Ownership of rail is CODELCO from the ship loader to Chanaral, Ferronor Chanaral to Diego de Almagro, and CODELCO Diego de Almagro to Potrerillos. The mine at Salvador only has a limited life, and without the mine the Potrerillos smelter is not required. Ferronor operated the line under contract to CODELCO

SQM Tocopilla. Looks like SQM have closed all mainline rail operations. Bad landslides in area of Reverso behind Tocopilla following rains 6/7/8 August. No attempts to repair line All freight currently moved by road. Closure of Pedro de Valdivia nitrate refining (in December 2015), was announced earlier in the year, Nitrate production is to be transferred to Nueva Victoria north east of Iquique. SQM currently have serious financial problems. Rail will continue to be used by the mining department to move caliche from the pampa to the oficina until closure of the Pedro de Valdivia nitrate operation in December. Post December when the Pedro de Valdivia nitrate pampa is abandoned, the need for the line to Tocopilla will no longer exist. Does anyone require 5 almost new 3'6" electrics?
http://www.bloomberg.com/news/articles/2015-06-18/chile-s-corfo-to-seek-repeal-of-sqm-leases-mercurio-reports
Former chairman (and still majority shareholder) Julio Ponce was Pinochet’s son in law. He has resigned as chairman
http://www.economist.com/news/business-and-finance/21617153-chiles-stock-exchange-regulator-dishes-out-huge-fines-over-series-illegal-share
http://www.latercera.com/noticia/negocios/2015/09/655-649411-9-svs-aplica-multa-por-un-total-de-1267-millones-a-julio-ponce-directores-y-ex.shtml
http://www.latercera.com/noticia/negocios/2015/09/655-648452-9-corfo-realiza-inspeccion-en-salar-de-atacama-para-cautelar-cumplimiento-de.shtml
http://www.agrimoney.com/news/sqm-shares-tumble-as-board-members-quit--8091.html
http://santiagotimes.cl/stock-exchange-vice-president-implicated-las-cascadas-fraud-case/

masterphots may have more up to date info, apparently there are moves by the Chilian Government to strip SQM of their mining leases
 



Edited 1 time(s). Last edit at 10/30/15 23:50 by jmt.

You summed it up quite nicely.  Salvador is most likely history;  Codelco will make a final decision about closure in the next few months.  At any rate, the railroad will never be restored as the cost is astronomical and trucks can do the job should the mine remain open. 

SQM is more interesting.  There is still a lot of product to be hauled from Coya Sur/Maria Elena, at least to Barriles which is where locos have been switched from diesel to electric,  but again, there are good roads with little traffic, so they could truck everything down the mountain to the port without many problems as to traffic and the like.  The electric operation is most likely finished due to the high costs and the ongoing saga with SQM's financial, legal and political problems.   Their lithium mining leases at Salar de Atacama have been questioned by the government as to environmental issues, and could very well be revoked by said government.   I hadn't heard that no trains were running from Maria Elena to Barriles but they may find that trucking is less costly than maintaining a railroad.  Overall the prognosis is not good, sorry to say.  When we were up there in March, I thought the box cab electric that I shot on a train might be the last I'd ever take, never dreaming it might be the last SQM train I'd ever photograph.   Hopefully not but time will tell.