KEY POINTS
- Antofagasta announces a $3.5 billion investment for 2025, focusing on Chile and Peru.
- Expansion projects include Nueva Centinela, Zaldívar mine extension, and the desalination plant at Los Pelambres.
- The company aims to become one of the top 10 global copper producers.
Chilean mining giant Antofagasta has announced plans to invest $3.5 billion in 2025, one of the largest financial commitments in its history, as it seeks to expand its operations in Chile and Peru.
CEO Iván Arriagada revealed that the company is actively pursuing copper projects in Peru, aiming for ventures capable of producing at least 50,000 tonnes of copper annually over a decade.
Antofagasta’s 2025 investment plans come after allocating $2.7 billion in 2024, up from $2.13 billion in 2023. Over the next five years, the miner expects to invest more than $7.5 billion, with the bulk of this focused on Chile.
The company is already advancing its $4.4 billion Nueva Centinela project, projected to boost output by 144,000 tonnes of copper-equivalent annually.
Major projects and goals
The Nueva Centinela project includes expanding the capacity of the current molybdenum plant and developing the Esperanza Sur pit with the introduction of autonomous trucks. This initiative forms part of Antofagasta’s broader strategy to enhance production and streamline operations.
According to a report by Mining.com, Antofagasta recently inaugurated a $2 billion desalination plant at its flagship Los Pelambres mine, a groundbreaking facility using desalinated water in a region hit by a 15-year drought.
Another key project is the $1.2 billion extension of the Zaldívar copper mine, expected to continue operations until 2051.
The company has further allocated between $40 million and $50 million annually for maintenance across its assets in Peru, the United States, and Canada. These investments are aligned with Antofagasta’s aim of positioning itself among the top 10 copper producers worldwide, driven by strong demand for copper used in electric vehicle batteries and construction.
Expanding global presence
Antofagasta’s strategy has been aggressive, with recent moves including acquiring a 19 percent stake in Peru’s Minera Buenaventura and expanding its footprint in the United States through its subsidiary, Twin Metals. The US unit has been working for over a decade to develop a copper-nickel mine in Minnesota.
However, the project faced setbacks in 2023 when the Biden administration canceled long-standing mineral leases and imposed a 20-year mining moratorium in the surrounding area.
Despite the political challenges, Arriagada remains confident about Twin Metals’ potential. He dismissed suggestions that the project’s success depends on future US administrations, noting that the company is currently defending its rights in court.
Furthermore, he reiterated the project’s value for US energy security and climate change initiatives, stating, “We will continue to promote this and exercise our rights in the US courts.”
