Anglo American's US$3.3bn Los Bronces Integrado project receives key permit

Chile approved the environmental permit for Anglo American's US$3.3bn Los Bronces Integrado project, which will extend mine life until 2036 and add 150,000t/y of fine copper.

"It will be a contribution, both to Chile and to our neighboring communities, since it will bring substantial benefits to the residents of Santiago, contributing to improved air quality and protecting the biodiversity of the environment," country manager Patricio Hidalgo said in a statement.

The permit was approved by the environmental review agency's ministerial committee, comprising the ministers of the environment, health, agriculture, energy and mining.

Economy minister Nicolás Grau did not participate because he compromised impartiality by telling newspaper El Mercurio that “if the vote on Los Bronces Integrado is favorable, it would benefit investments.” Economy undersecretary Javiera Petersen voted in his stead.

Anglo American will now request construction permits, and pave roads, install air quality monitoring stations and replace combustion engine with electric buses as part of measures to mitigate particulate emissions.

In its annual report, Anglo American said Los Bronces will feature autonomous transport and drilling systems, and that the first 22 heavy autonomous trucks of a fleet of 62 will be operational by 2024.

Los Bronces Integrado involves an underground mine to avoid interference with a new phase of the existing pit and works to power the water recirculation system. The miner and Aguas Pacífico signed an agreement in November on the delivery of 500l/s of desalinated water, covering 45% of operational needs from 2025. The contract also involves water supply for 20,000 residents of the Colina and Til-Til localities.

In a statement, the deputy president of mining association Sonami, Cristián Argandoña, said to achieve carbon neutrality, “it will be necessary to produce two to three times more copper than is currently produced in the world. Chile cannot continue wasting this opportunity.”

“We must promote mining investment, due to the multiplier effect it generates and because the investment we make today is the basis for future growth. With the current tax regulations, for each additional million tons of production, the contribution to fiscal financing would exceed US$1.3bn,” he said, adding that the permit approval sent a positive signal.

Criticism was expressed by environmental organizations.

“The truth is that we are not surprised, we had seen signs of support for this project from the undersecretary of the environment to the economy minister, and now we have this vote. However, we were hopeful that the government of President [Gabriel] Boric would get back on track and take charge of its environmental commitments,” Cristóbal del Río, a member of NGO No Más Anglo, was quoted as saying by a local website.

Anglo American executives claimed the project will not affect glaciers or the Yerba Loca and Los Nogales protected areas.

Exploration at the Los Bronces underground project increased copper content and mineral resources by 45Mt. Last year, Anglo American Chile produced 562,200t of fine copper, down 13%.