Chile’s Codelco seeks allow for $800 million mine extension

SANTIAGO (Reuters) – Chilean miner Codelco has requested an environmental allow to increase the lifetime of its Gabriela Mistral copper mine by greater than 25 years with an $800 million funding, the state-run firm mentioned on Monday.

The world’s largest copper miner goals to increase the mine’s lifespan past 2028 to 2055 and finish its use of home land-based water in 2035.

Water is crucial for a number of copper mining processes and plenty of mines in Chile, the world’s main copper producer, more and more pump seawater on to their operations to maneuver away from utilizing water from lakes, rivers and reservoirs.

Codelco mentioned it is going to present the identical quantity of water utilized by Gabriela Mistral to the northern Chilean area of Antofagasta (LON:ANTO), the place the mine is positioned, switching from land-based water to third-party sources that meet environmental requirements.

The corporate didn’t specify what sources would offer the choice water provide.

Gabriela Mistral, considered one of Codelco’s smallest mines, started operations in 2008, employs virtually 4,000 folks and produces about 110,000 metric tons of copper a 12 months, the corporate says.

To increase the mine’s lifespan, Codelco plans to extract copper oxides after which transfer on to sulfides, incorporating salt within the chlorinated leaching course of to enhance restoration charges.

The miner has been struggling to spice up manufacturing after quarter-century lows up to now two years, hit by delays at main enlargement tasks.