Antofogasta
Name of the Project
Los Pelambres copper mine expansion.
Location
Chile.
Client
Minera Los Pelambres, which is 60%-owned by Antofagasta and 40%-owned by consortiums led by JX Nippon and Mitsubishi.
Project Description
The expansion will add an average of 60 000 t/y of copper to the mine’s production over the first 15 years.
Throughput at the plant will be increased from 175 000 t/d of ore to an average of 190 000 t/d of ore.
The project includes the construction of a desalination plant and water pipeline.
A subsequent phase of expansion may follow, which depends on the receipt of the necessary environmental and regulatory approvals.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Value
$2.2-billion.
Duration
The desalination plant is expected to be completed in the second half of 2022 and the expanded concentrator plant in early 2023.
Latest Developments
Antofagasta has completed a review of the project schedule and costs for an expansion of its flagship Los Pelambres copper mine, and on April 21 reported a revised capital cost estimate of $2.2-billion.
This is a 30% increase from the previous estimate of $1.7-billion and is mainly owing to the impact of Covid-19 on costs and the construction schedule, as well as generation inflation, including increased input prices, wages, labour incentives and logistics costs.
Antofagasta in early 2021 raised the capital expenditure estimate from an original $1.3-billion to $1.7-billion, owing to revised marine works that were needed to enable the future expansion of the desalination plant.
At the end of March, the project was about 73% complete.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Antofagasta investors, Andrew Lindsay, tel +44 20 7808 0983 or email alindsay@antofagasta.co.uk.