BHP gets approval to start $15bn copper expansion in Chile
BHP Group has received its first major environmental approval for the expansion of its Escondida copper mine in Chile, enabling a tranche of work worth as much as $14.7-billion to start.
The country’s Antofagasta Environmental Assessment Commission has approved early stage works involving sulphide leaching and electricity upgrades, a BHP spokesperson confirmed on Tuesday.
This stage will cost around $1.3-billion and be followed by other major upgrades across mine and processing facilities at Escondida, the world’s biggest copper mine.
The company has a 57.5% stake in Escondida alongside Rio Tinto Group, which holds a 30% interest, and a consortium of Japanese companies that owns the remainder.
BHP is the world’s biggest miner of copper, which is critical for decarbonization and data centers, and plans to roughly double yearly output to more than two-million tons globally by the mid-2030s.
The ramp-up is heavily dependent on the success of its Chilean operations including Escondida, which are grappling with declining ore grades, prompting the company to invest heavily to maintain current output levels.
BHP estimates it will spend between $10.7-billion and $14.7-billion in the coming years at its operations in the country.
Last week, the company applied to restart and expand its Cerro Colorado mine in northern Chile at a cost of $1.5-billion. In March, it applied to build a new concentrator plant at Escondida that will cost around $5.9-billion.