Investments

Freeport McMoran plans $7.5bn investment to expand Chile copper mine


“We’re going to continue to review the economics in the context of market conditions, but believe this is a project that will be required in the future to support long-term copper demand trends,” Quirk said.

Freeport owns 51% of El Abra, with the remainder held by Codelco, one of the world’s biggest copper producers. The mine produced 98,400 metric tons of copper last year, according to data from state agency Cochilco.

Freeport chairman Richard Adkerson said Codelco was “anxious for us to move forward” and supported the company developing a relationship with Chilean President Gabriel Boric.

He noted that Boric had proven to be supportive of the mining industry.

“The tone is significantly changed from his initial election period,” Adkerson said.

Quirk added that Chile as well as Peru, home to Freeport’s copper and molybdenum mine Cerro Verde, were both interested in attracting more investment in the sector.

In Chile, she said Freeport was hopeful that the government would carry out its aim to streamline permitting for mining projects.

The expansion at El Abra calls for a new concentrator plant, pipelines for water requirements, and investments in desalinization. It would yield 750 million pounds of copper and 9 million pounds of molybdenum per year, Quirk said.

(By Fabian Cambero and Daina Beth Solomon; Editing by Stephen Coates)





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