Anglo American bets on key projects to boost copper production

Anglo American will maintain restricted copper production in Chile during 2025, mainly due to lower mineral grades at the Los Bronces and Collahuasi mines, although major projects are expected to help lift output by 2030.

Chilean copper output is set to decline to 430,000-460,000t this year, after having reached 507,200t in 2023. Including Quellaveco in Peru, total company output will be 730,000-790,000t, down from 826,200t.

However, in the Q3 results call, CEO Duncan Wanblad said that the London-headquartered firm will produce more than 1Mt/y by the start of the next decade.

This goal will be helped by expansion plans for Latin American assets, in particular the new extraction phase at the Los Bronces open-pit mine, the main operation in Chile, 65km from Santiago. The new phase will start production in 2027.

The new area of the deposit is part of the US$3.3bn Los Bronces Integrado (LBI) project to extract better quality minerals and contribute to maintaining production levels for several years with a more efficient and sustainable operation.

Until then, output at Los Bronces will continue to decline due to low-grade ore and hard rock, which has forced the company to keep a processing plant on maintenance since July to reduce operating costs.

In 3Q24, Los Bronces production fell 20% year-on-year to 36,600t, including copper in concentrate and cathodes. El Soldado in Valparaíso region registered a Q3 production increase of 16% to 11,300t.

However, the company's total copper production in Chile fell 7% year-on-year to 112,600t, according to the quarterly report.

This result was also impacted by the stagnation at Collahuasi, where attributable production was flat at 64,700t. Anglo owns 44% of the mine in Tarapacá region.

Anglo American's stake in Los Bronces and El Soldado is 50.1%, but production is reported at 100%.

Expansion

LBI, which includes an underground mine 5km from the current pit and a new water recirculation system to make water management more efficient, has been grappling with slow permitting and environmental groups that are trying to impede progress with complaints sent to environmental evaluation agency SEA.

However, LBI was approved in mid-2023.

Anglo's growth strategy also includes the improvement of Collahuasi's infrastructure and capacity, involving an investment of US$3.2bn, increasing the processing rate and incorporating a 1,110l/s desalination plant.

However, Wanblad said in a July report that delays have been due to a lack of coordination between authorities involved in processing permits and the lengthy period required for a robust dialogue with communities.

With an estimated delay of 18 months in the start-up of the desalination plant, until mid-2026, Minera Doña Inés de Collahuasi has a US$5mn subproject underway that extends the authorization for extraction of continental groundwater.

El Soldado also depends on permits to move forward with the construction of a US$40mn project, approved in August, that will allow it to continue operating until 2027 with lower water and energy consumption. A possible new extension of its useful life is being evaluated.