Chile’s supreme court has swung behind indigenous people in the country’s north to block a planned copper and gold mine.

The court withdrew the El Morro mine’s environmental permit on Tuesday, ruling that the Diaguita indigenous community must be consulted about the £2.3 billion project.

A lower court dismissed the Diaguitas’ appeal in April.

“The Diaguita people are happy that justice is on the side of the humble, of those who defend Mother Earth, our water resources and our indigenous land,” community leader Maglene Campillay said.

Canada-based Goldcorp, which holds a 70 per cent stake in the mine — Toronto’s New Gold Inc has the other 30 per cent — said it was reviewing its next step.

“Goldcorp remains committed to open and transparent dialogue with its stakeholders and to responsible practices in accordance with the highest applicable health, safety and environmental standards,” said spokeswoman Christine Marks.

The Diaguita said El Morro is sited on ancient ancestral land and that the mining giants failed to consult on the plans in line with International Labour Organisation standards.

The community has also stalled the £5bn Pascua-Lama mine, which straddles the Argentina-Chile border.

Barrick Gold Corp’s project has faced rising costs and falling gold prices in addition to Diaguita lawsuits aimed at safeguarding vital sources of water for the Atacama desert region such as rivers and glaciers from mine pollution.

Construction remains on hold until Barrick fulfils its environmental commitments.