Freehill Mining (ASX:FHS) said operations at the Yerbas Buenas project in Chile have been "negatively impacted" by ongoing legal issues arising from the death of a worker in 2024, according to a Thursday Australian bourse filing.

The firm said that its site was fully compliant at the time of the incident.

The commissioning of the plant took longer than anticipated due to delayed water access, installation of a sand washing circuit into the larger plant, the extended timeframe for material testing by customers, and reduced plant run time due to some inefficiencies.

It is implementing changes at the second site at Islon, within the La Serena precinct and at Yerbas Buenas to enhance production volumes and margins.