Peru's Antamina mine life extension cost hiked to $2bn, CEO says

30th March 2023 By: Reuters

LIMA - Peru's largest copper mine, Antamina, will spend $2-billion to extend the useful life of the deposit through 2036, up sharply from $1.6-billion previously planned, the company's CEO told Reuters on Wednesday.

Antamina CEO Victor Gobitz said the new investment figure for Antamina, co-owned by Glencore, BHP Group, Teck Resources and Mitsubishi, was due to higher and additional costs.

"It was due to costs on the one hand, and on the other hand because there are recurrent investments that the authorities believe should also be included in the investment figure," Gobitz said in an telephone interview, adding he expected approval by mid-year.

Peru is the world's second-largest producer of copper.

The lifespan of Antamina, which produced 467 905 t of copper last year, is currently set to expire in 2028.

Gobitz said approval of the extension is pending an environmental impact study and should be approved by mid-year, "although we do not have control over that."

The executive did not rule out requesting at extension beyond 2036 for the life of the mine, which is located in Peru's central Andes and also produces silver and zinc.

"The fact that the mine is extended until 2036 does not mean that the mine is finished. In order for a new environmental impact study to be presented, an engineering study will have to be carried out to support a new expansion," Gobitz said.