Archaeological Rescue: Statkraft Project & Drone Operation in Chile

The Chilean National Monuments Council (CMN) has concluded a four-year indigenous consultation process related to archaeological discoveries made during the construction of Statkraft Chile’s Los Lagos hydroelectric project, paving the way for the plant’s potential operation. The resolution, reached on November 12, 2025, addresses findings of lithic and ceramic artifacts, primarily ranging from 3 to 5 centimeters in size.

The Los Lagos project, a 52 MW run-of-the-river plant harnessing the Pilmaiquén River, is nearly complete at 99% construction, but has been unable to begin operations pending the resolution of the archaeological concerns and the associated consultation with local indigenous communities, specifically the Mapuche-Huilliche people. The consultation process was initiated following a November 2021 order from the Chilean Supreme Court, aiming to define measures for the protection and preservation of the archaeological sites.

Statkraft received official notification of the CMN’s decision on November 14, 2025, detailing the specific measures the company must implement on-site to manage the archaeological findings. While the exact nature of these measures hasn’t been publicly disclosed, they represent the culmination of a complex and often delayed process.

The delays have significantly impacted the project’s economics. According to a report by Chile Mining 2024, the project experienced a two-year delay, adding an estimated US$50 million to its overall cost. This highlights the increasing financial risks associated with large-scale infrastructure projects in regions with significant indigenous cultural heritage.

The situation underscores a broader trend of increased scrutiny and consultation with indigenous communities regarding resource extraction and infrastructure development in Chile. The process has not been without friction. Organizations have expressed concern over alleged persecution and intimidation of Mapuche Williche defenders by the Chilean Investigative Police (PDI) in connection with the Los Lagos project and the resumption of the indigenous consultation process. Specifically, concerns were raised regarding the detention of Felipe Trunci González and Jaime Javier Uribe Montiel, and allegations of improper procedures during their arrests.

Statkraft has acknowledged the concerns and stated its commitment to conducting thorough human rights and environmental due diligence. The company’s Code of Conduct, approved by its Board of Directors, emphasizes adherence to international standards in these areas. However, the allegations of police misconduct raise questions about the practical implementation of these commitments and the potential for conflict between development projects and the rights of indigenous communities.

The Los Lagos project is intended to contribute to Chile’s energy transition and sustainability goals by providing clean, low-emission electricity. The plant has an installed capacity of 52 MW and is designed to operate with a load factor of approximately 70%. Its reservoir covers roughly 191.9 hectares, and the dam stands 35 meters tall.

In 2023, indigenous groups filed a complaint against Statkraft with the OECD contact point, alleging violations of the OECD Guidelines for Responsible Business Conduct. The OECD has agreed to review parts of the case and initiate mediation. Statkraft has publicly responded to the complaint, but details of the response have not been widely disseminated.

The conclusion of the indigenous consultation represents a critical milestone for Statkraft, allowing the company to implement the agreed-upon measures and move towards commissioning the Los Lagos plant. However, the project’s history – marked by delays, cost overruns, and allegations of human rights concerns – serves as a cautionary tale for other companies operating in similar contexts. The need for robust engagement with indigenous communities, respect for cultural heritage, and transparent operational practices is paramount to mitigating risks and ensuring the long-term sustainability of infrastructure projects in Chile and beyond.

The successful completion of the Los Lagos project, while delayed and costly, could provide a template for future renewable energy developments in Chile, demonstrating a pathway for balancing economic growth with environmental and social responsibility. However, ongoing monitoring of the implementation of the archaeological mitigation measures and continued dialogue with indigenous communities will be essential to ensure that the project delivers on its promises and avoids further conflict.