A powerful 7.4magnitude earthquake struck northern Chile near its border with Argentina on July 19, 2024. The tremor occurred at 9:50 PM local time, as reported by the U.S. Geological Survey. The epicenter was located 45 kilometers (28 miles) east-southeast of San Pedro de Atacama, Chile, at a depth of 117 kilometers.
The earthquake’s impact was felt in the vicinity of significant mining operations. The Escondida copper mine, which is the world’s largest and is jointly owned by BHP Group and Rio Tinto, is situated around the affected area. Additionally, the Salar de Atacama lithium mine, operated by Chilean Mining Chemical (SQM), is located to the south of San Pedro de Atacama.
While initial reports from Rio Tinto indicate that operations at the Escondida mine have not been affected and ongoing inspections are being conducted, the full extent of the damage and potential impact on mining activities in the region, including those of SQM, remains to be assessed.
The seismic event has already had an immediate effect on the stock market. Shares of SQM experienced a significant drop, falling 4.73% from their highest point to the closing bell, reflecting investor concerns over the potential impact of the earthquake on the company’s operations and financial performance.
