Antofagasta Minerals aims to start new phase of growth

Buoyed by solid copper, gold and molybdenum output last year, Chile’s Antofagasta Minerals is preparing to start a new phase of growth.

The miner will allocate US$2.7bn to continue the expansion of the Los Pelambres operation in Coquimbo region, improve the development plan for Centinela in Antofagasta region and cover maintenance costs and other initiatives, according its 4Q23 production report.

The useful life of the Zaldívar mine will be extended until 2051, with an investment of US$1.2bn, which involves mining a primary sulfide deposit at the open pit mine.

The extension is essential to reverse the 9% year-on-year drop in copper production last year, closing with 40,500t attributable, and to shift water supply from a local aquifer to desalinated water, Antofagasta Minerals said.

Under the plan, continental water will still be used between 2025 and 2028 rather than desalted seawater.

Copper production at Los Pelambres increased 9% to 300,300t last year, thanks to higher processing capacity derived from a fourth concentrator line and better water availability because of the start-up of a desalination plant expected to reach a production flow of 400l/s shortly.

Antofagasta Minerals has an operational adaptation plan for Los Pelambres, which has been approved by authorities, to double the plant’s capacity.

Los Pelambres also produced 8,100t of molybdenum last year, up 13%.

Another key project is the US$4.4bn Centinela development to incorporate a second concentrator that will add 170,000t/y of copper and to start mining two new deposits.

This expansion will be financed 60% through a specific capitalization project and 40% by direct contributions from owners Antofagasta plc and Marubeni Corporation. After the details have been agreed, construction will advance, according to the statement.

Last year, Centinela produced 242,000t of copper, 79,300t of copper cathodes and 162,700t copper in concentrates, as well as significant increases in byproducts. Gold production was 165,800oz, up 24%, and molybdenum 2,900t, up 21%.

Betting on favorable copper prices in the long term due to the energy transition, Antofagasta Minerals aims at increasing output to reduce costs and offset the effects of inflation in this new business stage, according to company CEO Iván Arriagada.