Chile approves Anglo project to increase copper supplies; Codelco sees new synergies

Chile approved an investment of more than US$3 billion in a copper mine owned by Anglo American Plc despite some environmental concerns, a sign of the government’s willingness to boost production of a key raw material in the energy transition. clean.

A committee of Chilean government ministers approved the environmental permit the bronzes Integrated of the global mining company, which contemplates an investment of US$ 3,300 million.

Government ministers voted unanimously to allow Anglo to add underground operations at its mine the bronzes, thereby overturning a decision issued last year by environmental regulators. The approval is accompanied by conditions regarding water monitoring and emission control, said the Ministry of Environment it’s a statement.

Executives, bankers and operators attending a mining conference in Chile this week closely followed the ministerial vote. It is increasingly difficult to obtain permits in Chili, at the same time that developing new deposits is becoming more complicated and expensive. That adds to supply constraints just as the move away from fossil fuels increases demand for the metal for cabling.

Los Bronces, where production is currently constrained by deteriorating ore quality and water restrictions, has faced opposition to its plans amid concerns about their potential impact on glaciers and water availability.

The London-based firm said the project, initially budgeted at $3.3 billion, will not affect glaciers or require additional freshwater or tailings dams.

The copper production of Chili, the country that produces the most red metal in the world, has stagnated as lower mineral grades and water shortages offset the new supply entering the market. At the same time, the government is seeking a larger share of windfall profits to finance social programs, proposing tax hikes that have caused companies to delay investment decisions.

Codelco sees new synergies

For its part, Codelco, the world’s largest producer of copperexpects greater synergies from its mine andean With the neighbour the bronzes of Anglo American after environmental approval on the eve of the extension of the useful life of the deposit, the chief executive of the Chilean state company said on Tuesday.

“There are always new synergies, mining has dynamics and as projects progress, this happens“, said Andre Sougarretafter participating in the World Copper Conferencewhich is celebrated in Santiago.

“We are confident that this will generate a positive future for both operations.”, he added.

Codelco has a shareholding in Anglo American Sur, to which Los Bronces belongs.

Conditional measures for the approval of Los Bronces Integrado include a joint study with Andina de Codelco on monitoring particulate matter emissions.

“We have been working on it,” explained the executive, without providing details.

With information from Bloomberg and Reuters