Chile SEA watch: 30 mining projects approved in 2017

Chile's environmental evaluation service (SEA) approved 30 mining-related projects involving investments of US$6.07bn in 2017, according to information compiled by BNamericas.

The total investment requirements of the projects approved last year fell almost 50% from the US$12.0bn reported in 2016, when a total of 27 mining-related developments received environmental approval.

The largest project to get the green light in 2017, in value terms, was the US$2.5bn Spence Growth Option submitted by Anglo-Australian miner BHP. The company approved the project for investment in August.

The project, located in the Sierra Gorda district of Antofagasta Region (II), involves the extension of the mine life by up to 20 years from 2019 to 2039 by processing primary sulfides. The expansion involves building a concentrator in order to produce around 835,000t/y of copper concentrate and 7,500t/y of molybdenum concentrate, as well as a desalination plant, among other works.

Next on the list was the US$1.4bn upgrade of the Chuquicamata Underground project, presented by state copper giant Codelco. The original initiative, located in Calama, El Loa province, is already under construction and involves shifting from the soon-to-be-depleted open pit to an underground operation, due to be exhausted at the end of the next decade. Chuquicamata Underground remains on schedule to start up in the first half of 2019, followed by a seven-year ramp-up phase to achieve the production capacity of 140,000t/d.

Other mining projects approved include the US$460mn optimization of the thickened-tailings dam submitted by Minera Centinela, part of Chilean mining company Antofagasta Minerals; the US$370mn copper concentrate recovery plant presented by Ecometales, a subsidiary of Chile's state miner Codelco Techologies; and the US$300mn La Negra plant expansion Phase 3, submitted by US-based lithium producer Albemarle.

SUBMISSION FOR EVALUATION

Meanwhile, the SEA received 20 mining-related projects for evaluation in 2017, with planned investment reaching a combined US$3.500bn.

The past year saw a reactivation in submissions of projects for evaluation, rising from six in 2016 to 20 in 2017. However, the total planned investments were down 46% from US$6.541bn in 2016.

The largest mining project submitted was the US$2bn initiative to optimize Sierra Gorda, controlled by Poland's KGHM International. The objective of the Sierra Gorda Optimization Project is to increase ore extraction from the open pit by 29.8%, reducing the amount of waste rock removed by 3.5% and increasing ore processing capacity by 15.8% from 190,000t/d to an average 220,000t/d for 21 years.

Next up was the environmental impact assessment submitted by Mantos Copper to carry out the Mantoverde development project in Atacama region (III).

The US$832mn development involves the expansion and operational continuity of the Mantoverde mine and entails mining sulfide resources.

THIS YEAR: NINE PROJECTS

This year seems looks like an auspicious one for mining projects to obtain environmental approval. So far, nine projects have been approved by the SEA, involving US$1.50bn in investments.

The largest initiative approved so far this year, by value, was the US$1.35bn El Teniente New Mine Level, submitted by state copper giant Codelco. The original project involves the development and mining of a new mine level at El Teniente, with the aim of ensuring continued operations at the mine until 2064. The initiative involves exploiting an area of ore 300m below the current mine, extending the productive life of the deposit for at least 50 years.

Other mining projects approved this year include the US$76.5mn Codelco Andina exploration project in Valparaíso region (V), which includes 130,000m of diamond drilling over 10 years; and the US$19.5mn Lomas Bayas update, submitted by Minera Lomas Bayas, a Chilean subsidiary of global commodities giant Glencore.