Antofagasta plc has announced the approval of the Centinela Second Concentrator Project, which will add 170,000 copper equivalent tonnes per year of production. The project is a key element of the company's growth strategy and will significantly contribute to its long-term goal of achieving 900,000 tonnes of profitable copper production. Construction is expected to begin after the execution of definitive project finance documents in Q1 2024, with first copper production anticipated in 2027.
The Centinela Second Concentrator Project will not only increase production but also reduce net cash costs and unlock significant value in the Centinela District's two billion tonne ore reserve. The expansion project is expected to deliver attractive returns and make Centinela one of the top 15 copper mines in the world by output. Additionally, the project will position Antofagasta as one of the leading gold producers in Chile.
The company plans to leverage its operational experience and understanding of Centinela's ores, utilizing existing infrastructure and building on established relationships within local communities. Antofagasta aims to create significant financial and non-financial value for all stakeholders while maintaining disciplined capital allocation.
Antofagasta's CEO, Iván Arriagada, highlighted the global shortage of copper and the increasing demand driven by electrification and the energy transition. The Second Concentrator Project presents an opportunity to provide additional copper from the company's existing resource base, using 100% renewable electricity and raw sea water to reduce the environmental footprint. Arriagada emphasized that the project aligns with the company's purpose of developing mining for a better future.
Overall, the Centinela Second Concentrator Project is a significant development for Antofagasta, contributing to its growth strategy, increasing production, and positioning the company as a major player in the copper and gold mining industry.