Capstone Copper (ASX:CSC) plans to invest more than US$3 billion ($4.27 billion) in Chile over four years as it seeks to double its Chilean copper production by 2031. The announcement comes ahead of its third-quarter report, due on 30 October Australian time.
The Chilean Government says at least US$2.3 billion of the plan is allocated to the Santo Domingo Copper-Iron-Gold Project in the Atacama region.
A further US$220 million will fund two near-term growth projects at the neighbouring Mantoverde mine.
Other allocations include US$165 million for mine development, US$150 million in sustaining capital, and US$70 million for exploration. The disclosed amounts total US$2.905 billion, with the balance of the broader plan not itemised.
The plan follows Capstone’s US$25 million acquisition of the San Pietro Copper-Gold-Iron-Cobalt Project, as reported by Mining.com.au in early September. The project added approximately 16,000 hectares between Mantoverde, Santo Domingo, and Sierra Norte to Capstone’s Chilean portfolio.
Capstone describes Santo Domingo as fully permitted and expects the operation to produce an average of 106,000 tonnes of copper annually during its first seven years. However, the project remains subject to final sanction and financing decisions.
The Chilean Government estimates construction at Santo Domingo would require more than 8,000 workers at its peak.
Capstone Copper is a Canadian copper producer operating the Mantoverde and Mantos Blancos mines in Chile and the Pinto Valley mine in the US.
Write to France Pinzon at Mining.com.au
Main image: Capstone Copper
