Freeport’s long-term copper plans taking shape with US$740mn El Abra project

US miner Freeport-McMoRan is planning to invest US$741mn to optimize its leaching operation at its El Abra mining operation in Chile, improving copper recovery and setting the stage for one of the biggest investments in the country's mining industry in recent years.

In addition to ensuring the lifespan of the Antofagasta region operation through 2029, the initiative is part of a broader US$7.5bn strategy to expand the El Abra deposit, tapping into estimated additional copper reserves in excess of 9Mt.

The planned expansion, which would include the construction of a concentrator plant and a desalination facility, set to begin operating by 2033, is poised to become Chile’s second-largest copper mining project after the Quebrada Blanca Phase II project being carried out by Canadian firm Teck Resources. 

The preliminary step for this ambitious growth plan is the Sulfolix Leaching Pile Modification project, which Freeport-McMoRan recently submitted to environmental review agency SEA to update the design of the original leaching pile approved in 2008.

While this project does not yet involve changes to extraction, processing or production rates at El Abra, it will pave the way for an improved design to ensure production continues until the end of the decade and beyond. 

“This will allow us to continue working on the design of a better project that can extend operations post-2029,” Mario Larenas, Freeport-McMoRan’s country manager in Chile, said in a statement.

The environmental impact study for the increase in output at El Abra is expected to be submitted at the end of next year. Larenas stated in a radio interview in late November that, after a three-year permitting process, “we will then make the investment decision.”

Indeed, a key factor in Freeport-McMoRan’s growth strategy in Chile is the permitting process. Although congress is considering a bill to reform the environmental framework law (No. 19,300) with the aim of addressing issues within the SEA, the proposal is not seen as sufficient to guarantee investments in the sector.

“It only addresses one aspect – the coordination between the various reviewing entities. There are about 44 agencies involved in reviewing projects, including those related to hydraulic works, mining safety and extraction methods. However, other challenges must be addressed, such as strengthening technical evaluations and avoiding decisions driven by political motives, as seen in the Dominga case,” Jorge Riesco, president of Chilean mining association Sonami, told BNamericas.

Meanwhile, the environmental impact declaration submitted by Freeport subsidiary, Minera El Abra is awaiting SEA approval to begin construction of the leaching project.

The US company owns a 51% stake in El Abra, while Chilean state-owned firm Codelco owns the remaining 49%.