Chile’s environmental regulator, the Environmental Assessment Office, has rejected Anglo American’s application for a $3 billion expansion of its flagship Los Bronces copper mine.
The decision was primarily based on the potential impact of the mine expansion on the environment and more especially the impact on public health, to which the miner said in a statement that it is assessing the details of the decision.
The Los Bronces asset, one of Anglo American’s two largest copper operations, has been mined for over 150 years and is running out of high-grade ore. The expansion would therefore allow the company to tap higher grade ores from a new underground section of the mine, extending its life through 2036.
“Anglo American is examining the details of the [decision] and expects to continue following the regulated permitting process in Chile, which includes the potential to request a review by a minister’s committee to evaluate the full breadth of merits of the project.”
Anglo American
The project uses the mine’s existing processing facilities, optimizes water efficiency, and requires no additional fresh water or tailings storage facilities, according to Anglo American. Meanwhile, critics worry about potential impacts on a local glacier as well as on water availability for the region.
The Los Bronce mine has the capacity to produce over 300,000 tonnes of the red metal each year. The underground deposit is estimated to have a 1.7 per cent copper grade, three times the mine’s open pit grade. In that sense, it would be a rare example of an expansion project that will process lower tonnage without requiring further milling and processing capacity.
Anglo American also estimates it will reduce production costs from $1.50 per pound of copper to about $1.30 a pound. It noted that the project has been designed after 10 years of scientific studies and a comprehensive and transparent consultation process with local communities as well as the relevant authorities.
It further stated that mitigation steps will compensate for 120 per cent of the emissions produced by the project and the mine’s current operations, during construction as well as in operation to improve local air quality.
Appealing the Regulator’s Decision
The company as well as partners of the mine— Chile’s copper miner Codelco, Mitsui and Mitsubishi — now have 30 days to appeal the resolution.
The company noted it would continue to work with the regulator and other appropriate regulatory authorities to make available any additional information and provide clarity on the project. The area around Los Bronces hosts 30 per cent of Chile’s copper resources and 10 per cent of world resources.
Copper deposits are among the hottest assets in mining right now, mainly due to the metal’s use in electric vehicles and the global green energy revolution.
Experts estimate the copper industry needs to spend more than $100 billion to build mines able to close what could be an annual supply deficit of 4.7 million tonnes by 2030. Shares in the company fell slightly over 2 per cent on the news after the announcement to $3,512 pence in earlier today.
The environmental assessment process for Anglo American’s Los Bronces Integrated Project (LBIP) in Chile began in 2019, and with this new information on the state of affairs of the project, the company will still have to demonstrate that all potential impacts have been fully mitigated.
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