Goldcorp working on new development plan for El Morro project

Goldcorp Inc. has withdrawn its environmental impact study for the El Morro copper-gold project in Chile

The move comes a month after the Chilean Supreme Court invalidated a decision by the Atacam Region environment authority, which approved Goldcorp's El Morro environmental impact study in October, 2013.

The project, which the Diaguita indigenous community says could pollute a river on their ancestral land, has been tangled in court battles for several years.

Goldcorp chief executive Chuck Jeannes said in a statement Friday that the company was disappointed by the court ruling, but added it has "afforded us a unique opportunity to challenge our previous assumptions within the context of evolving industry dynamics."

The company said it has started work on a new development plan for the project.

Goldcorp has 70 per cent ownership of the El Morro project while the other 30 per cent is owned by New Gold Inc., also headquartered in Vancouver.