Spotlight: Glencore's copper projects in Chile and Argentina

Swiss mining company Glencore will invest around US$400mn by 2026 in feasibility and development work at Argentine copper projects Mara and El Pachón, while collaborating on the construction of the Collahuasi desalination plant and advance automation at Lomas Bayas in Chile.

Mara, El Pachón and Collahuasi will be key to the company's goal to increase overall copper production by 1Mt/y, according to its 2024-26 climate action plan.

Glencore invested US$61mn in Mara and El Pachón development in H1, it said in a results presentation. Collahuasi received US$466mn.

The start of operations at Mara, in Catamarca province, northern Argentina, is planned for end-2026. The project requires US$2.78bn and is projected to produce 278,000t/y of copper for 28 years.

El Pachón in San Juan province will need investments of US$5.6bn to produce 350,000t/y for 25 years, with construction expected to begin in late 2025, according to BNamericas data.

Mara and El Pachón are 100%-owned by Glencore. 

COLLAHUASI

In Chile, the company holds 44% of Minera Doña Inés de Collahuasi, a joint venture with Anglo American, which also owns 44%, and a Japanese consortium led by Mitsui, holding 12%.

Based on its interest, Glencore received 125,000t of Collahuasi's copper in concentrate production in the first half, up 9% year-on-year due to improved ore grades and the commissioning of a fifth ball mill.

Total output was 284,090t, tracking 2023 production of 577,000t of fine copper.

A US$3.2bn infrastructure and productive improvement project is underway at the mine to ensure continuity for 20 years and raise processing capacity from 170,000t/d to 210,000t/d.

A 1,050l/s desalination plant is also being built as part of the project.

Environmental review agency SEA recently approved the adjustment of the water pumping schedule from the Coposa salt flat basin for 18 months. The US$5mn project will allow use of continental water in 2025 and 2026 due to delayed construction of the desalination plant.

LOMAS BAYAS

In addition to an ongoing US$254mn operational continuity project at 100%-owned Lomas Bayas in Antofagasta region, aimed at increasing copper production to 80,000t/y, Glencore is implementing automation plans.

Dubbed Lomas Lab, the initiative aims to strengthen security and productivity, Lomas Bayas' integrated management and autonomous operation head Marcelo Navarrete told an event in late July.

Autonomous drilling rigs have been incorporated since last year, as the fleet of Komatsu trucks is being automated. The vehicles have the advantage of operating at “low altitude, in good weather and 90 minutes from Antofagasta city with access to the port and airport,” Navarrete said.

At the same time, the installation of a real-time remote control system for equipment and driverless vehicles is progressing, while the communications network, control room and servers, among others, are being optimized.

In H1, Lomas Bayas produced 37,200t, up 25% year-on-year.

CLIMATE GOALS

To achieve carbon neutrality by 2050, Glencore wants to reduce scope 1, 2 and 3 emissions by 15% by end-2026, 25% in 2030 and 50% in 2035 compared to 2019.

Among measures being considered are using biofuels, hydrogen, more renewable energy contracts and installing wind or solar plants at its operations.