Chilean copper miner Antofagasta has approved the construction of the Centinela second concentrator project, adding another 170,000 tonnes/year of copper equivalent to the company’s production.

The company plans to begin critical path works immediately, with full construction anticipated to begin after the execution of definitive project finance documents in Q1 2024. At an estimated $4.4 billion cost, the project includes the construction of a new 95,000 t/day concentrator plant with high-pressure grinding rolls to reduce energy consumption.

It will also involve the expansion of the existing raw seawater pumping and transport system; a new tailings storage facility; and capacity growth in energy and other input supply infrastructure.

Chief executive Iván Arriagada notes that the Centinela second concentrator project is a “key element” to the company’s profitable growth strategy. It will bring the company closer to its goal of reaching 900,000 t/y of “profitable copper production.”

The project “will also reduce net cash costs and unlock significant value in the Centinela District’s 2 billion tonne ore reserve,” he adds. With first production slated for 2027, the new investment is expected to help Centinela to become one of the top 15 copper mines in the world by output.

“Our view on the medium to long-term outlook is that the world is facing a significant shortage of copper, with electrification and the energy transition driving rising demand. The Second Concentrator Project is a clear opportunity to provide additional copper from our existing resource base,” concludes Arriagada.

The second concentrator will initially source ore from the recently opened Esperanza Sur pit and later from the Encuentro pit. It is expected to produce about 144,000 t/y of copper, 130,000 ounce/y of gold and 3,500 t/y of molybdenum.