Antofagasta Minerals makes steady progress on key copper projects in Chile

Higher copper and gold prices allowed Chilean company Antofagasta Minerals to end the first half with solid financial results as it continues to advance its growth plans.

In the first six months of the year, Ebitda rose 4.8% to US$1.39bn and revenues by 2.3% to US$2.96bn, compared to the same period 2023. However, net earnings dropped to U$413mn from US$535mn.

The expansion of Centinela, which involves US$4.4bn to extend the copper mine’s useful life for 30 years from 2027 when operations were projected to end, "continues to be underway, with greater progress than expected," Antofagasta Minerals said in a statement on Tuesday.

Located in Antofagasta region, the 'new Centinela' project looks to add 144,000t/y of copper. Last year the mine produced 242,000t of copper, 165,000oz of gold and 2,900t of molybdenum.

To increase volumes at the operation that only uses undesalinated seawater and renewable energy, the company will incorporate a second concentrator, boost the performance of the molybdenum plant, develop the Esperanza Sur pit and include new technologies.

It considers the implementation of HPGR (high pressure grinding rolls) crushers to maximize the grinding process, and the introduction of 11 Komatsu 980 E-5 autonomous extraction trucks, Antofagasta said in a document last month.

Another initiative highlighted in the H1 report is the start of works to double capacity of the desalination plant to 800l/s at Los Pelambres, the company’s biggest copper mine located in Coquimbo region. The desal plant, in Punta Chungo port in the town of Los Vilos, began operating in March as part of a complementary infrastructure project.

In addition, a slurry pipeline will be built between the Los Pelambres concentration plant and the port under the operational adaptation project involving US$1bn.

Last year Los Pelambres produced 300,300t of copper, and for this year, adding Centinela, Antucoya and Zaldívar, Antofagasta Minerals anticipates that it will achieve total production at the lower end of guidance of 670,000-710,000t of copper, due to lower grades of copper and byproducts.

Antofagasta Minerals is controlled by Chile's Luksic group.