BHP Launches $10.8 Billion Investment to Sustain Copper Output in Chile
BHP Group is set to begin a $10.8 billion investment program in Chile, starting with the modernization of an aging copper plant at its Escondida mine.
The move comes as the world’s largest mining company battles declining ore quality while striving to maintain production levels.
During a site visit on Tuesday, Chilean Finance Minister Mario Marcel joined BHP officials, who confirmed that the $2 billion-plus upgrade of the Escondida concentrator would soon enter environmental approval processes.
While BHP’s long-term investment plans in Chile have been known, Tuesday’s announcement marks the official start of the Escondida upgrade, a crucial first step in securing future production.
The sheer scale of investment required highlights the industry’s challenges in meeting rising global copper demand—driven by the energy transition and the data center boom—while grappling with lower-grade ore deposits.
Beyond the Escondida concentrator overhaul, BHP’s investment pipeline includes:
- A new processing plant at Escondida, estimated to cost $4.4 billion to $5.9 billion.
- New leaching technology, aimed at improving recovery rates.
- A potential restart of the Cerro Colorado mine.
With these investments, BHP aims to sustain an annual production rate of approximately 1.4 million metric tons of copper in Chile over the next decade.
Without them, output could drop to 900,000 metric tons, posing a significant challenge to both the company and the broader industry.
