Australian mining giant BHP has signalled its long-term commitment to global copper supply, submitting a US$5 billion (AU$7 billion) investment plan for a new concentrator at the Escondida mine in Chile.
The project, valued between US$4.4 billion and US$5.9 billion (AU$6.7 billion to AU$9 billion), is designed to underpin operations at the world’s largest copper resource for decades to come.
The “Escondida New Concentrator” project was submitted to Chile’s Environmental Assessment System on March 17. It serves as a strategic replacement for the historic Los Colorados plant, which is nearing the end of its operational life.
Once the new facility is commissioned, the aging Los Colorados plant will be decommissioned and demolished.
The new concentrator is expected to produce between 220,000 and 260,000 tonnes of copper per annum.
More importantly, the upgrade will allow Escondida to maintain its massive overall processing capacity of 460,000 tonnes of ore per day, ensuring production levels remain stable even as the mine enters its next chapter.
If the project receives the green light from environmental regulators, construction is slated to begin shortly after, with first production anticipated between 2031 and 2032.
The scale of the investment is set to provide a major boost to the regional economy and the mining services sector.
BHP estimates that the construction phase will require an average of 2,500 workers per month, with workforce requirements expected to peak at 6,000 people.
As the world transitions toward renewable energy and electric vehicles, both of which are heavily reliant on copper, this multi-billion-dollar investment ensures that BHP remains the dominant player in the global copper market.
