Minera Los Pelambres presented a project to maintain its operations until 2051

Press release from Antofagasta Minerals

This is an automated translation of the press release issued in Spanish

Antofagasta Minerals' Minera Los Pelambres submitted to the Environmental Impact Assessment System (SEIA) the Useful Life Extension (EVU) project that seeks to prolong its operations beyond 2035, the date on which its current permits expire. With this initiative, the Company plans to continue copper production until 2051 in a sustainable manner, using clean energy and desalinated seawater, among other attributes.

“This project is part of the company's vision for the future, which seeks to maintain its contribution to the economy, employment and well-being of the inhabitants of the Choapa province, the Coquimbo region and the country, by carrying out modern, sustainable and environmentally friendly mining,” said Iván Arriagada, CEO of Antofagasta Minerals.

As its name indicates, the initiative consists of extending the useful life of the Minera Los Pelambres operation, one of the largest copper deposits in Chile, incorporating around 1.2 billion tonnes (Mt) of additional reserves to the 2.1 billion Mt already environmentally approved.

The materialization of the Los Pelambres Mine Life Extension Project will entail an initial investment of 2 billion dollars and it is estimated that during its period of greatest construction activity it will generate approximately 4,000 jobs.

Sustainable water supply

Minera Los Pelambres is currently building the Operational Adaptation Project (PAO), which, among other works, involves doubling the capacity of the desalination plant in Los Vilos to produce 800 liters per second of desalinated water. Once the PAO is operational, more than 90% of the water used by the operation will be recirculated or desalinated.

With the aim of continuing to operate primarily with seawater or recirculated water, the EVU project could progressively enable up to 800 additional litres per second of desalinated water, if necessary. To do so, it will take advantage of a significant part of the infrastructure already built in the Los Vilos sector, such as underwater seawater intake works. This reduces potential impacts on its surroundings and avoids interfering with other activities taking place in the bay.

“We want to continue deepening the water transition that we started this year by becoming the first mining company in central Chile to use seawater in its production processes. With the EVU project, we will ensure the requirements of future operations in a context of climate change, fulfilling our commitment to produce copper basically with seawater or recirculated process water,” explained Alejandro Vásquez, General Manager and Vice President of Operations at Minera Los Pelambres.

Contribution to the province of Choapa

As with the other projects that are part of the Los Pelambres Futuro vision, the EVU project is considering making part of its seawater extraction capacity available to the community as part of its voluntary commitments, which could be used by an initiative developed by third parties for human consumption and other uses. In this way, it contributes to addressing the drought that is affecting the province of Choapa and the Coquimbo region as a result of climate change.

Extending Minera Los Pelambres' operations beyond 2035 "implies a benefit not only for its shareholders, but also for the province of Choapa, the Coquimbo region and the country. In 2023 alone, the Company generated taxes of 365 million dollars, and today it employs more than 7,700 people, more than half of whom live in the Coquimbo region. In addition, it does business with hundreds of small and medium-sized local companies and supports social initiatives defined jointly with neighboring communities and the authorities," said Alejandro Vásquez.

Minera Los Pelambres today represents 25% of the regional GDP and nearly 70% of exports

Other relevant environmental aspects

As a way of reducing its potential impact on the environment, the EVU project will take advantage of the facilities already built at the El Mauro dam to deposit its tailings, without requiring the intervention of new sectors. To do so, it plans to increase the maximum height approved in the current plan for the main wall of the dam by approximately 16%.

“For this expansion of the El Mauro Dam, we have carried out engineering studies and various simulations, with the advice of a panel of international experts, in order to guarantee its safe operation,” explains Alejandro Vásquez.

Furthermore, the EVU Project will not affect rocky glaciers or high Andean plains located in the vicinity of the deposit, which is located in the Andes mountain range, more than 3,500 meters above sea level.

It is important to mention that, as part of its environmental commitments to the Coquimbo region, the Company currently protects more than 27,000 hectares of wild areas, including 4 Nature Sanctuaries (Laguna Conchalí Ramsar Site, Palma Chilena de Monte Aranda, Quebrada Llau-Llau and Cerro Santa Inés). “For each hectare that we use in our operations, Minera Los Pelambres protects 6 hectares of wild areas. In this way, we contribute positively to the conservation, knowledge and dissemination of biodiversity in the central region of Chile,” said the Vice President of Operations and General Manager of the Company.