BHP to Invest Up to $14 Billion in Expanding Chilean Copper Operations

BHP the world’s largest miner is ramping up its copper ambitions in Chile, with plans to boost production by 430,000–540,000 tonnes per annum (tpa) through current operations and new projects.

Key Highlights from BHP’s 2024 Chilean Copper Tour

Long-term Goals: Production to stabilize at 1.4 million tpa, up by 100,000 tonnes from current levels.

Major Investments: $10–14 billion over the next decade, including $7.3–9.8 billion for the Escondida mine — the largest copper mine globally.

Planned Projects

• New Concentrator: Expected to add 220,000–260,000 tpa by 2031/32, with a $4.4–5.9 billion investment.
• Laguna Seca Expansion: Adding 50,000–70,000 tpa by 2030/31, requiring $2–2.6 billion
• Leaching Facilities: Anticipated to deliver 35,000–55,000 tpa starting in 2030/32, with $0.9–1.3 billion in capex.
• Pampa Norte Growth: Increasing output by 125,000–155,000 tpa, driven by supergene leaching at Cerro Colorado, with a $2.8–3.9 billion investment.

Why It Matters

Copper demand is forecasted to soar as renewable energy and EV adoption accelerate. With global consumption projected to grow by 1 million tonnes annually until 2035, BHP sees a $250 billion investment opportunity in meeting future demand.

As the top copper-producing nation, Chile supplies 28% of global output. BHP has played a pivotal role, contributing 27% of Chile’s production via its operations and producing 38 million tonnes since 1990.

What’s Next?

Market analysts note that BHP’s copper expansion plans exceed expectations and that lower-than-expected capex intensity signals a focus on efficiency. Meanwhile, M&A opportunities, such as revisiting Anglo American, could further bolster BHP’s portfolio.

BHP President Minerals Americas, Brandon Craig, emphasizes the company’s commitment: „These investments position us to sustainably meet rising global demand while maintaining Chile’s leadership in the copper market.”