U.S. mining company Freeport-McMoRan (FCX.N) plans to invest approximately $7.5 billion to expand its El Abra copper mine in Chile. This project is expected to take seven to eight years to develop due to permitting requirements, according to CEO Kathleen Quirk
During a call with analysts after reporting second-quarter results that exceeded profit estimates, Quirk mentioned that Freeport plans to submit an environmental impact statement by the end of next year.
“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 holds a 51% stake in El Abra, with the remaining share owned by Codelco, one of the world’s largest copper producers. The mine produced 98,400 metric tons of copper last year, according to state agency Cochilco.
Freeport Chairman Richard Adkerson noted that Codelco is eager for the expansion to proceed and supports the company’s efforts to establish a relationship with Chilean President Gabriel Boric, who has shown increased support for the mining industry since his initial election period.
Quirk added that both Chile and Peru, where Freeport’s Cerro Verde copper and molybdenum mine is located, are keen to attract more investment in the mining sector.
In Chile, Freeport is optimistic that the government will streamline permitting processes for mining projects. The El Abra expansion will include a new concentrator plant, pipelines for water requirements, and investments in desalinization. The expansion is projected to yield 750 million pounds of copper and 9 million pounds of molybdenum annually, Quirk said.
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