PERTH (miningweekly.com) – Copper developer Hot Chili has started port access negotiations, marking the final critical infrastructure item required for the development of the Costa Fuego copper development hub in Chile.
The company on Friday announced that it has executed a letter of intent (LoI) with Puerto Las Losas SA (PLL) to negotiate a port access and port services agreement for PLL’s facilities located at Huasco, some 50 km west of Costa Fuego’s proposed processing plant.
Under the terms of the LoI, PLL will finance a study for port services using the existing Puerto Las Losas dock for the shipment of copper concentrates and other materials related to the future construction and operation of Costa Fuego.
PLL has undertaken to present Hot Chili with a binding offer for port services, within the next 12 weeks or less.
Should a binding port services agreement be executed, PLL has committed to commence any required upgrade at Las Losas, and both parties will work together on a best endeavours basis to start operations during the last quarter of 2025.
“Securing port services will be a major step forward for Costa Fuego. Leveraging off existing port infrastructure will materially reduce Costa Fuego’s environmental footprint during construction and operations,” said Hot Chili country manager and chief legal counsel Jose Ignacio Silva.
“As no new port or areas will be required for construction or subject to environmental permitting, we expect a positive impact to our construction capital requirements and overall permitting/construction timelines.”
MD Christian Easterday told shareholders that Costa Fuego continued to benefit from its low altitude location and proximity to existing transport, power and port infrastructure, resulting in low capital intensity.
“Our LoI with PLL demonstrates our continued commitment to advancing Costa Fuego within an environmental and social governance framework that reduces the overall environmental impact and uses Chilean goods, services and businesses where possible.”
Costa Fuego is estimated to host 2.9-million tonnes of copper, 2.7-million ounces of gold, 9.9-million ounces of silver and 64 000 t of molybdenum, and consists of the Cortadera, Productora and El Fuego projects.