Mining extractivism, as the dominant economic model in various Latin American countries, has been addressed in several studies analyzing its social and economic consequences. However, the psycho-environmental analysis of this extractivist model has been scarce. This article examined the risk perception of the northern Chilean city's residents affected by a sinkhole. The methodology used was qualitative, descriptive, and interpretive. The following techniques were used to collect data: interviews in motion and Photovoice. The results showed that the sinkhole occurrence has profoundly transformed the risk perception, affecting the residents' emotional well-being and quality of life. This situation has generated a far-reaching psycho-environmental crisis, aggravated by three aspects: the lack of information, deteriorating trust, and historical neglect by public and private institutions in the area. This research provides a novel perspective on understanding the dynamics of psycho-environmental risk and socio-spatial exclusion processes associated with the extractivist development model, which have been scarcely addressed in previous studies of socio-environmental disasters.