Chile should be producing some 6.8 Mt of fine copper towards the year 2012, representing a 23% increase over the production expected for the previous year, according to a study prepared by Comisión Chilena del Cobre (COCHILCO). It estimates that the higher copper production will mainly derive from the start of operations of new copper projects being developed in the country.

Among the main copper developments to come to fruition around 2012, there is the expansion of the new Gabriela Mistral mine, belonging to Codelco, the development of the Esperanza deposit, and Expansion II at Los Pelambres, both belonging to the Antofagasta Minerals group. Added to these projects are, the Collahuasi Phase I expansion, belonging to Anglo American and Xstrata Copper, and the expansion to the Los Bronces (formerly Disputada) mine, also an Anglo American operation.

To this end, COCHILCO estimates planned investment of $21.6 billion in copper and gold mining in Chile during the 2008-2012 period, way above the $16.2 billion previously estimated for the 2007-2011 period.

The increase is due to the incorporation of a $2.5 billion investment in Xstrata Copper’s El Morro, and to the higher costs of the projects currently in the pipeline. Of the total investment, nearly $18.5 billion would be used only in copper mining, of which, approximately $8.15 billion, would correspond to Codelco investments; about $9.85 billion to large mining companies; and the rest, about $460 million, to medium-size mining , the study reports.

Meanwhile, for 2009, COCHILCO estimates planned investment in copper and gold mining of approximately $5.33 billion, representing the largest annual investment package for the 2008-2012 period.

Simultaneously, in gold and silver mining, COCHILCO estimates planned investment of around $3.14 billion between 2008 and 2012, originating from Barrick Gold, for its Pascua Lama (100%) and Cerro Casale (51%) and Kinross Gold (49%) projects.

Project                                               Production                                      Start date

Gabriela Mistral                                  150,000 t/y                                   May 2008

Esperanza                                           195,000 t/y                                   Late 2010

Los Pelambres Expansion II             80,000 t/y                                     2010

Collahuasi Phase I                           110,000 t/y                                     2010

Los Bronces Expansion                  175,000 t/y                                     2011

El Morro                                              155,000 t/y                                      2011