An estimated US$2.44Bn of capital investment will be required to develop the copper-molybdenum deposit.

Mining company, Los Andes Copper, is developing its 100%-owned Vizcachitas copper-molybdenum project in Chile. The project is located 150km north-east of Santiago in the Rio Rocin Valley of the country. In February 2023, the project received a positive pre-feasibility study (PFS) as well as environmental approval from Chile’s Environmental Evaluation Service (SEIA) in 2019.

Los Andes Copper has provided an update for the timeline and development of the project. An initial capital investment of US$2.44Bn will be required to develop the project with construction planned to commence between 2027-2029, and first copper production anticipated by 2029. The company aims to produce around 183ktpy of copper over the first eight years of operation. Molybdenum is also anticipated to be produced, as the deposit hosts significant molybdenum mineralisation.

The project lies within the north-south oriented Andean metallogenic belt, which is well known for its extensive copper-molybdenum porphyry deposits, spanning the Andean slopes of Chile and Argentina. Notable copper deposits in the belt include El Pachon, Los Pelambres, Rio Blanco, Los Bronces, and El Teniente. This is a region which has a rich history of producing copper, molybdenum, and other associated by-products. The measured and indicated mineral resources at Vizcachitas are estimated to be 1.28Bnt, grading 0.396% Cu and 141.4ppm Mo. As such, the project has significant potential to contribute to Chile’s future copper and molybdenum production.

With Chile being the largest copper producer and the second-largest molybdenum producer in the world, it will play an important role in the energy transition. Demand for copper and molybdenum is expected to grow year-on-year as a result of their use in energy transition applications, thus requiring additional sources of copper and molybdenum in the future. Developing new sources of supply is especially pertinent given that Chile’s molybdenum production has declined year-on-year according to Project Blue data. The decline in output was largely the result of declining ore grades at aging copper mines.

Vizcachitas is one of several Chilean copper projects anticipated to come online over the next decade. The commissioning of the copper-molybdenum project by 2029 would help to alleviate concerns over supply shortages as demand picks up.