Enami awards pre-feasibility study linked to US$1.4bn Paipote smelter modernization

Chilean state mining company Enami awarded the pre-feasibility studies for electrolytic refining and a noble metals plant, both part of the US$1.38bn modernization of the Hernán Videla Lira smelter (FHVL), to local company JRI Ingeniería.

Located in Paipote, Atacama region, the unit has been paralyzed since February, due to environmental concerns and because it generated daily losses of 200mn pesos (US$210,000), representing “approximately 75% of Enami's loss in 2023,” mining minister Aurora Williams told the senate mining committee in July.

The environmental impact study for the modernization is being evaluated by review agency SEA.

JRI was selected in an open call by Enami and will prepare the technical and economic reports "in order to maximize the generation of value in the project," the modernization project manager José Sanhueza said in a statement.

Modernizing the unit is a priority of President Gabriel Boric, who told the mining committee that he will capitalize Enami to resolve the financial crisis it is facing.

PROJECT

The modernization involves technologies that capture 99% of emissions and help increase maximum processing capacity to 850,000t/y.

The electrolytic refinery, with capacity of 235,000t/y of cathodes, and the noble metals plant that will allow the recovery of precious metals such as gold and silver, are key elements of the megaproject, Sanhueza said.

Before stopping operations, FHVL had processing capacity of 340,000t/y of new useful load to obtain 80,000t/y of anodes and 250,000t/y of sulfuric acid. The modernization will increase capacity to 700,000t/y of copper concentrate and 192,000t/y of copper anodes.

The new unit will substantially help small and medium-sized mining companies to get their output processed, a promotional video said.

Enami vice president Iván Mlynarz told BNamericas in a recent interview that financing from the State and a private partner is needed.

Within the context of rising copper demand due to electromobility, "we offer a smelter of interesting size for South America, with the option of supplying refined copper to Mexico, Brazil and others," Mlynarz said.