Chile suspends Endesa's planned $1.4 bln thermo plant

* 740-MW project's environmental impact study rejected

* Endesa says to appeal to govt' over decision

* Energy woes hammering world top copper producer

SANTIAGO, June 25 (Reuters) - A Chilean commission suspended
energy firm Endesa's $1.4 billion, 740-megawatt Punta Alcade
coal-fired thermoelectric project planned in the world top
copper miner's mineral-rich north, the environmental impact
agency said on Monday.

Endesa said it would appeal to the government over
the decision to reject Punta Alcalde's environmental impact
study, the latest blow to a mega project in power-starved Chile.

Environmental groups are increasingly opposing power
projects ranging from coal-fired thermoelectric plants in
Chile's northern Atacama, the world's driest desert, to
hydropower dams in the wild southern Patagonia region.

The two 370-megawatt units are planned in Chile's Atacama
region, close to Antofagasta Minerals' Los Pelambres
mine, the Cerro Casale project owned by Barrick Gold
and Kinross, and Lumina Copper's Caserones mine.

Other energy and mining projects in the Atacama region are
also reeling from legal setbacks.

Chile's top court suspended a key permit for Canadian miner
Goldcorp Inc's $3.9 billion El Morro copper-gold project
in April and is due to pronounce itself on Batista's MPX Energia
and giant German utility E.ON's $5 billion Central
Castilla in coming weeks.

Years of under-investment, a destructive 8.8 magnitude
earthquake in 2010, droughts and the country's long, thin shape
have debilitated Chile's power grid, drawing increasing fire
from energy-intensive mining firms.

Environmental groups say many of the massive energy projects
would harm air quality, destroy pristine Patagonian areas or
pollute often-scarce water supplies.

A spike in lawsuits against key energy projects is
increasing already steep power prices and inhibiting investment,
deputy energy minister Sergio del Campo told Reuters in an
interview earlier this month.

(Reporting by Alexandra Ulmer;editing by Sofina Mirza-Reid)