Chile’s state-owned Codelco, the world’s leading copper producer, is accelerating plans to merge three of its mines into a single operation. The new super-mine will be one of the largest on the planet and is expected to deliver roughly 680,000 tonnes of copper annually.
The integration involves the Chuquicamata, Radomiro Tomic and Ministro Hales mines in northern Chile. The project has received preliminary approval, and concept work is now underway, with a focus on developing technological solutions. Chilean media report that the pace of work is being sped up because it will allow the company to achieve significant savings.
The core idea is to combine the mines into one technological stream and improve extraction planning. This consolidation is expected to save Codelco around $2 billion. Mergers are not unusual in the mining industry – in Poland, for instance, coal mines have been combined, and KGHM’s Polkowice-Sieroszowice mine was created in 1996 through a similar integration.
Financial pressures drive consolidation
Codelco has been grappling with massive debt, which has weighed on its ability to invest in growth. The merger is seen as a way to unlock efficiencies and reduce costs. According to preliminary plans, benefits will begin to appear as early as 2027, thanks to unified operational planning for the mines and shared processing facilities, possibly under a single management structure.
– The combined entity will become one of the world’s top three copper production sites. Its current output from the three mines totals about 670-680 thousand tonnes annually – just slightly less than the entire production of Poland’s KGHM. – said a company source familiar with the plans.
Global significance of the new super-mine
The new super-mine will rank third globally in terms of red metal production. This move comes at a time when global demand for copper is rising, driven by electrification and renewable energy technologies. Codelco’s decision to merge instead of expanding through greenfield projects reflects a pragmatic approach to maximising existing assets while keeping costs under control.
The integration process also involves optimising the use of processing plants and improving the overall efficiency of the mining chain. While the initial savings are estimated at $2 billion, further benefits may follow once the merged operation reaches full potential. The project is a clear sign that even the largest miners are looking for innovative ways to stay competitive in a challenging market.
Źródło: WNP.PL, Fot. Jose Luis Stephens / Shutterstock
