BHP is set to invest $2 billion to optimize the concentrator at Escondida, the largest copper mine worldwide. This investment is part of a broader $10.8 billion plan in Chile and coincides with support from Chilean Finance Minister Mario Marcel. BHP anticipates a significant global copper deficit in the coming decade, necessitating further investments to meet rising demand.
BHP, an Australian iron ore mining company, plans to invest $2 billion to enhance the concentrator at the Escondida copper mine, the largest of its kind globally. This initiative forms part of a comprehensive $10.8 billion investment strategy in Chile. The company is preparing to file for environmental permitting for this investment shortly.
The investment announcement coincided with a visit from Chilean Finance Minister Mario Marcel, who underscored that substantial foreign investments, such as those from BHP, are crucial for expanding and reinvesting in existing operations within the country.
This initiative initiates a decade-long investment strategy from BHP, originally disclosed in November 2024. Alejandro Tapia, the president of Escondida, stated that this plan not only sustains current production but also represents a $10 billion investment beneficial to both Chile and the Antofagasta region.
In the first half of the 2025 financial year, Escondida experienced a 22% increase in copper output, contributing to an overall production increase of 10%, totaling 987,000 tonnes. The necessity for copper production is heightened due to a global transition towards lower-emission energy sources.
BHP anticipates a looming global copper deficit of 10 million tonnes within the next decade. The company is committed to investing at least $11 billion in Escondida and other projects in Chile to fulfill the anticipated demand. Recently, BHP and Lundin Mining completed a joint acquisition of Filo, a Canadian exploration and development firm, for C$4 billion, thereby securing a 50% stake in Filo along with its FDS copper project in the Atacama region of Chile.
BHP’s $2 billion investment in the Escondida copper mine, part of a larger $10.8 billion plan, signifies the company’s commitment to enhancing production capabilities and meeting future copper demands amid global shortages. The partnership with Lundin Mining further strengthens BHP’s position in the Chilean mining sector, vital for both local economic growth and global energy transitions.
Original Source: www.investmentmonitor.ai
