Marimaca Copper (TSX:MARI) has received grid connection authorisation for the Marimaca oxide deposit in Chile, as well as the key commercial terms for a power purchase agreement framework.
CEO Hayden Locke says this provides a clear pathway to securing 100% renewable power at a cost closely aligned with the company’s Definitive Feasibility Study (DFS) assumptions.
“Importantly, the proposed commercial structure provides the flexibility required during commissioning and ramp-up,” Locke says.
“More broadly, we continue to make steady progress towards construction readiness. Access-road upgrades are advancing, early-works packages are out for tender, key permits remain on track and detailed engineering is progressing well.”
Under the power purchase agreement signed with a well-known energy provider, the agreed long-term energy pricing is US$93 ($134) per megawatt-hour. The contract is structured with flexibility to achieve commercial production with a ramp-up period that does not include any take-of-pay provisions.
The agreement is for an initial five-year term after the ramp-up period, following completion of construction at the Marimaca deposit.
What’s to come
Marimaca plans to begin early site works this quarter, with contractor packages currently out for tender. The activities will focus on establishing key facilities, roads, and utilities to accommodate full-scale construction activities.
An additional workstream is planned to bring forward preparatory work for the seawater pipeline route to enable construction to begin in 2027.
Meanwhile, detailed engineering remains ongoing. Priority work focuses on site-layout optimisation from the DFS and progressing detailed engineering for core project areas.
The Marimaca oxide deposit is the company’s flagship project located in Antofagasta, Chile.
A 2025 DFS demonstrates the potential of the deposit to be a low-capital-intensity, high-margin mine, with compelling near-mine and satellite resource expansion opportunities.
The study outlines a post-tax net present value of US$1.1 billion, with an internal rate of return of 39% and a 2.2-year payback period. The project has an initial 13-year mine life, with a reserve of 179 million tonnes @ 0.42% copper for 748,000 tonnes of contained copper.
Marimaca Copper is a dual-listed Canadian exploration and development company focused on advancing copper assets in northern Chile. This includes its flagship Marimaca oxide deposit and the Pampa Medina Project.
Write to Aaliyah Rogan at Mining.com.au
Main image: Marimaca Copper
