Top LatAm mining projects ramping up in 2020

Several large new mines are ramping up to capacity across Latin America in 2020, following major milestones last year.

BNamericas takes a look at the top six projects currently in or fast approaching the ramp-up or commissioning stages, with full production earmarked for this year.

The operations – primarily copper and gold focused – will establish Panama and Ecuador as significant mining countries for the first time, while boosting output in Chile, Colombia and Argentina.

Once at full tilt, the six assets will produce a combined 770,000t/y copper and 688,000oz/y gold, for combined capex of about US$14bn.

COBRE PANAMÁ

Capex: US$6.5bn

Country: Panama

Metals: Copper, gold

The ramp-up to full production at First Quantum Minerals’ US$6.5bn Cobre Panamá project is in full swing.

The mine promises to put Panama on the map as a significant copper and gold producing country.

In December, its final eighth mill came online, which will allow mill throughput to ramp up to 85Mt/y in 2020.

Copper output was 60,000t in Q4, along with 28,000oz gold. The mine is expected to produce 285,000-310,000t of the red metal in 2020, rising to 310,000-330,000t next year.

CHUQUICAMATA UNDERGROUND

Capex: US$5bn

Country: Chile

Metals: Copper, molybdenum

Chilean state copper producer Codelco inaugurated the Chuquicamata underground project last year, with production forecast to ramp-up to 320,000t/y copper by 2026.

The underground project is the company’s biggest ever investment, and will extend the life of Chuquicamata for 40 years.

Chuquicamata previously ranked among the world’s largest open pit copper mines, with operations running for more than a century.

MIRADOR

Capex: US$1.40bn

Country: Ecuador

Metals: Copper, gold

Mirador is the first large-scale metallic mining operation in Ecuador, run by EcuaCorriente, an Ecuadoran subsidiary of China’s CRCC-Tongguan consortium.

Trial production at the US$1.40bn project began last year, with a first significant shipment of 22,000t of copper concentrate expected in January.

Output is expected to reach 150,000t of copper in 2020.

FRUTA DEL NORTE

Capex: US$692mn

Country: Ecuador

Metals: Gold

The second major Ecuadoran operation in the list, Fruta del Norte, is currently ramping up to commercial production, expected in 2Q20.

Owner Lundin Gold announced pre-commercial production of 28,678oz gold last year, with construction 99.2% complete at end-2019.

Production at the mine if forecast at an average of 310,000oz/y gold over a 15-year mine life.

BURITICÁ

Capex: US$389mn

Country: Colombia

Metals: Gold, silver

Continental Gold’s Buriticá will be Colombia’s biggest gold mine, producing 282,000oz/y over a 14-year mine life.

The company is on track for mechanical completion in Q1, with the subsequent ramp up to commercial production expected to take 6-9 months.

Progress at Buriticá has attracted the interests of major players, with Chinese mining company Zijin Mining Group planning a US$1.4bn takeover of Continental.

LINDERO

Capex: US$298mn

Country: Argentina

Metals: Gold

Fortuna Silver is putting the finishing touches to its Lindero project in Argentina’s Salta province, which is expected to produce 96,000oz/y gold over a 13-year mine life.

Primary and secondary crushing circuits were in pre-commissioning in December, with agglomeration plant pre-commissioning expected to kick off in January.

The project’s 8MW power plant has already been commissioned.

The company has stockpiled 452,000t of mineralized material at average grade of 0.58g/t gold, with the mining rate planned to increase in Q1 as higher grade areas are exposed.