BHP secures environmental clearance for Escondida expansion
BHP Group has recently received the green light from the Antofagasta Environmental Assessment Commission to proceed with the expansion of the Escondida copper mine in Chile. This significant milestone paves the way for the company to kickstart projects valued at a staggering $14.7bn (A$21.16bn).
The approved activities encompass early works focusing on sulphide leaching and enhancements to the electricity infrastructure at the mine site. These initial endeavors are estimated to cost around $1.3bn and will be followed by additional upgrades to both the mining and processing facilities at Escondida.
Situated in the Atacama Desert of northern Chile, approximately 170km southeast of Antofagasta, Escondida is a prominent copper porphyry site. BHP holds the majority stake in the operation, with a 57.5% interest, while Rio Tinto Group owns 30% and a consortium of Japanese companies controls the remaining share.
Looking ahead, BHP is projecting investments ranging from $10.7bn to $14.7bn in its Chilean operations over the next few years. Copper, a vital component in decarbonisation efforts and the development of data center infrastructure, is at the forefront of the company’s growth strategy.
BHP is aiming to almost double its annual copper production to over two million tonnes globally by the mid-2030s. To achieve this ambitious target, the company is heavily reliant on the performance of its Chilean mines, including Escondida, where declining ore grades necessitate substantial investments to maintain current production levels.
In a separate development, BHP has also submitted an application to recommence and expand its Cerro Colorado mine in northern Chile, with an estimated project cost of $1.5bn. Furthermore, the company is seeking approval to construct a new concentrator plant at Escondida, with an anticipated price tag of $5.9bn.
Recently, BHP finalized agreements to divest its San Manuel property in Arizona, US, to Faraday Copper, through a wholly owned subsidiary. This strategic move aligns with the company’s broader portfolio optimization strategy.
The article “BHP secures environmental clearance for Escondida expansion” was originally featured on Mining Technology, a brand owned by GlobalData. This latest development underscores BHP’s commitment to enhancing its operational capabilities and solidifying its position as a leading player in the global copper market.
