Chilean mining powerhouse, Antofagasta plc (LON: ANTO), has announced its decision to construct a hefty US$4.4B concentrator at its Centinela copper mine in northern Chile. This significant addition will be the company’s second concentrator and is expected to increase the company’s total production by over 170Kt of copper-equivalent per year.
Antofagasta is wasting no time, with preliminary work set to commence immediately. Full-scale construction is anticipated to begin following the execution of definitive project finance documents in the first quarter of 2024.
CEO Iván Arriagada has said that this expansion would aid Antofagasta in achieving its long-term goal of 900Kt of profitable copper production, thereby positioning Centinela among the top 15 copper mines globally in terms of output.
The Centinela mining complex, situated in the Antofagasta region of Chile, was established in 2014 following the merger of the Esperanza and El Tesoro mines. The complex produces copper concentrates embedded with gold and silver through a milling and flotation process, and copper cathodes via a solvent extraction electrowinning process.
Arriagada emphasized the significance of Centinela’s second concentrator project in the company’s profitable growth strategy. He commented, “It will…reduce net cash costs and unlock significant value in the Centinela district’s 2Bt ore reserve.”
He further explained that the new concentrator, capable of processing 95Kt per day, will contribute an additional 144Kt of copper production, 130Koz of gold production, and 3,500t of molybdenum production over a period of 36 years.
Antofagasta has been implementing measures to mitigate the likely impending copper shortage, propelled by electrification and the energy transition. The approved project, Arriagada says, will utilize 100% renewable electricity and unprocessed seawater, thereby diminishing the company’s environmental impact.
The development plan also encompasses the establishment of a new tailings storage facility, enhancements in overall infrastructure, and expansion of outbound logistics networks, including the concentrate transport system and port infrastructure.
The company is also contemplating the adoption of more autonomous equipment and innovative technologies to repurpose discarded mine waste.
The development plan for Centinela’s second concentrator includes preliminary work, necessary enhancements, and innovative technologies with the first copper yield expected in 2027. Expanding Centinela as one of the top copper mines in the world.
“Our view on the medium to long-term outlook is that the world is facing a significant shortage of copper,” said Arrigada. “The second concentrator project is a clear opportunity to provide additional copper from our existing resource base.”
