BHP Group has secured an initial environmental permit from the Antofagasta Environmental Assessment Commission for the planned expansion of the Escondida copper mine in Chile.
This move allows the company to begin work on projects valued at up to $14.7bn (A$21.16bn).
The approval covers early works related to sulphide leaching and electricity infrastructure improvements, according to a BHP spokesperson, as reported by Bloomberg.
This stage is expected to cost approximately $1.3bn and will be followed by further upgrades to both mine and processing facilities at the Escondida site.
Escondida is a copper porphyry site in the Atacama Desert of northern Chile, approximately 170km south-east of Antofagasta.
BHP holds a 57.5% interest in Escondida, with Rio Tinto Group owning 30% and a consortium of Japanese companies controlling the remaining share.
The company anticipates spending between $10.7bn and $14.7bn on its Chilean operations over the coming years.
Copper plays a key role in both decarbonisation initiatives and the development of data centre infrastructure.
BHP aims to almost double its annual copper output to more than two million tonnes (mt) globally by the mid-2030s.
The company’s growth plans rely heavily on the performance of its Chilean mines, including Escondida, where falling ore grades have led to significant investment to sustain existing production rates.
In recent developments, BHP also submitted an application to restart and expand its Cerro Colorado mine in northern Chile, a project estimated at $1.5bn.
Additionally, in March, the company sought approval to construct a new concentrator plant at Escondida at a projected cost of $5.9bn.
Earlier this month, BHP, via a wholly owned subsidiary, signed definitive agreements to sell 100% of its San Manuel property in Arizona, US, to Faraday Copper.
“BHP secures environmental clearance for Escondida expansion” was originally created and published by Mining Technology, a GlobalData owned brand.
