BHP's Spence operations in Chile
PERTH (miningweekly.com) – Diversified miner BHP could potentially invest as much as $10-billion into its Chilean copper ambitions, if given the right incentive, president for operations minerals Americas Rag Udd told the World Copper Conference.
He told delegates that BHP was focused on growing its copper output in future, to meet the expected surge in global demand.
“To achieve this, our growth strategy is based upon four key levers: First, through getting more out of our existing assets through innovation, technology, production efficiencies and expansions, as we are doing at our operations here in Chile.
“Second, growth through exploration, like at Oak Dam in South Australia. Third, through early-stage entry, such as our recent investment in Filo Mining, a copper project located on the Chilean/Argentinian border. And finally, through mergers and acquisitions, but only for value and under the right conditions,” Udd said.
He noted that while Chile was currently the world’s largest copper producer and had an extraordinary resource endowment, with the potential to be right at the centre of the expected demand growth for copper, there were several challenges facing the country.
“Copper productivity has declined in recent years, and there are challenges with declining grades and rising costs. Other countries are also competitive and are vying for capital in a market that is internationally mobile,” said Udd.
“At BHP, we want to grow in Chile, and are accelerating studies to do so. We would like to invest over $10-billion dollars of further investment in Chile, and create mutual benefit for at least the next 50 years.
“We are looking at things like a new concentrator and leaching processing facilities, developing new mining areas, and investments in decarbonisation to reduce Scope 1 emissions, ultimately to net zero.
“We are eager to grow. These investments would bring new jobs and shared prosperity for the communities and society in which we operate, and we want to ensure that our communities, employees and partners come along on this journey.
“But as I said, these investments need the right set of conditions. These conditions are well known, but worth repeating; long-term investments in mining require fiscal stability, legal certainty, and a clear pathway to permitting,” he said.