Freeport-McMoRan plans to invest approximately $7.5 billion to expand its El Abra copper mine in Chile, with the development expected to span seven to eight years due to permitting requirements, CEO Kathleen Quirk announced on Tuesday.
In a call with analysts following the company’s second-quarter earnings report, which exceeded profit forecasts, Quirk revealed that Freeport aims to submit an environmental impact statement by the end of next year.
“We will continue to assess the project’s economics in light of market conditions, but we believe it is essential to meet future long-term copper demand,” Quirk said.
Freeport owns a 51% stake in El Abra, while the remainder is held by Codelco, one of the world’s largest copper producers. The mine produced 98,400 metric tons of copper last year, according to data from the state agency Cochilco.
Freeport Chairman Richard Adkerson noted that Codelco is keen for the project to proceed and emphasized the importance of building a strong relationship with Chilean President Gabriel Boric, who has shown increased support for the mining industry.
“The tone has significantly improved from his initial election period,” Adkerson said.
Quirk also mentioned that both Chile and Peru, where Freeport operates its Cerro Verde copper and molybdenum mine, are keen to attract more investment in the mining sector. She expressed hope that Chile’s government will streamline permitting processes for mining projects.
The El Abra expansion will include the construction of a new concentrator plant, pipelines for water, and investments in desalination infrastructure. The expansion is expected to produce 750 million pounds of copper and 9 million pounds of molybdenum annually.