Chile’s Codelco, the world’s top copper producer, plans to invest an additional US$720 million ($985.6 million) revamping its century-old Chuquicamata copper mine, in an effort to stop the company’s overall production decline.
The state-owned miner already spent US$5.7 billion to convert the open pit into an underground mine, as part of a 10-year, US$39 billion-overhaul of its core assets currently in execution.
Codelco, which is also in the process of spending US$1.3 billion on related infrastructure, is now seeking environmental approval for design adjustments and complementary works, according to a document posted on the Environmental Assessment Service (SEA) website.
The proposed operational changes, both underground and at the surface level, “will not alter the extraction and processing speeds originally authorized for the project,” according to the submission.
Codelco, whose profits all go to the state, holds vast copper deposits that account for 10% of the world’s known proven and probable reserves.
Satellite image of Chuquicamata’s division. Credit: Codelco
The miner’s new chief executive officer, Ruben Alvarado, has been tasked with boosting production levels.
Last year, the company produced 1.4 million tonnes of copper, a decline from the 1.6 million tonnes it churned out in 2021. This year, it’s expected to produce nearly 1.3 million tonnes of copper, which would be its lowest in 25 years.
Alvarado has said that fresh plans already in motion will boost output in 2024 to around 1.3 million tonnes.
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