A second concentrator plant could add around 170ktpy of copper equivalent from 2027.

Antofagasta Minerals has approved the construction of a second concentrator plant at its Centinela mine in Chile. With the approval in place, the company plans to start critical path works immediately. Construction is expected to start after the finalisation of definitive project finance documents which are expected in Q1 2024. The project will be financed by Centinela’s shareholders, Antofagasta and Marubeni Corporation, which will contribute around 40% of the total costs as well as funds from lenders.

The project’s current cost is estimated at US$4.4Bn. The investment will be used to construct the new 95ktpd concentrator plant, featuring high pressure grinding rolls (HPGRs) for reduced energy usage, the expansion of the existing raw seawater pumping and transport system, and a new tailings storage facility. The concentrator plant will be constructed over two phases.

Once operational, Centinela’s second concentrator plant is expected to produce an additional 170kt of copper equivalent annually. The production will include approximately 145ktpy of copper, 130koz py of gold and 3.5ktpy of molybdenum over a mine life of 36 years based on Centinela’s ore reserves of 2Bnt. First copper is expected in 2027. Ore for the second concentrator will initially be sourced from the recently opened Esperanza Sur pit, followed by the Encuentro pit. The sulphide ore in the Encuentro pit is located beneath the Encuentro oxides reserves, which are projected to be depleted by 2026.

Chile will play an increasingly important role in the energy transition relating to its copper production. Demand for copper and its associated by-products is expected to continue to grow year-on-year. Antofagasta’s decision to add mine (Esperanza Sur pit) and processing capacity (second concentrator plant) at its Centinela mine will further strengthen Antofagasta’s position in the Chilean copper industry while providing operational and economic security for the company.