BHP Secures First Environmental Approval for $14.7 Billion Escondida Copper Expansion
BHP Wins Environmental Approval to Begin Major Expansion of Chile’s Escondida Copper Mine
BHP Group has secured its first major environmental approval for the expansion of the Escondida copper mine in Chile, allowing the company to begin early-stage work on a broader investment programme worth up to $14.7-billion.
Chile’s Antofagasta Environmental Assessment Commission approved initial works covering sulphide leaching activities and electricity infrastructure upgrades, a BHP spokesperson confirmed.
The first phase of the expansion is expected to cost about $1.3-billion and will be followed by further upgrades to mining and processing facilities at Escondida, the world’s largest copper mine.
BHP operates Escondida and holds a 57.5% stake in the mine, alongside Rio Tinto, which owns 30%, while a consortium of Japanese investors holds the remaining interest.
Copper is a key metal for renewable energy, electrification and data centre development, and BHP aims to significantly increase its global copper production to more than two million tonnes a year by the mid-2030s.
The expansion of Escondida is central to that strategy as the mine faces declining ore grades, requiring major investment to sustain production levels.
BHP estimates it will invest between $10.7-billion and $14.7-billion across its Chilean operations in the coming years.
The company has also proposed a $1.5-billion restart and expansion project at the Cerro Colorado mine and has applied to build a new concentrator plant at Escondida at an estimated cost of $5.9-billion.
