The Chilean Army’s Under Secretary suspended four concessions owned by Nova Austral's Pesquera Cabo Pilar in the Beagle channel, in the Magallanes region, reports La Segunda.

The authority declared the concessions invalid on May 27, and submitted the decision to the Government Accountability Office.

This measure was requested by the Chilean Fisheries Under Secretary (Subpesca) following an investigation into the concessions, which had been inactive over the past 10 years.

Under Chilean law, salmon concessions are awarded on the condition that they are used. However, this clause has not been enforced, and around 60 percent of the concessions in Chile are not in use.

The four concessions belonging to Cabo Pilar had been inactive due to a ban imposed on the concessions following a lawsuit between the former owner of the concessions and a plaintiff.

Nova Austral acquired Cabo Pilar in 2018, facing an unprecedented backlash from environmentalists and local politicians in Cabo de Hornos, the municipality that administers matters in the Beagle channel.

Speaking to IntraFish about the dispute prior to the resolution, Nova Austral CEO Nicos Nicolaides said the position of the government was unfortunate, and argued the concessions were not used as a result of external forces, and not because of the company's decision making.

Aquaculture

Chilean Army suspends four Nova Austral salmon concessions