Mining Milestone: Peru Gives Nod To Expansion Of Key Copper, Zinc Mine

Peru has given the greenlight for a $2 billion expansion at the Antamina copper and zinc mine. 

One of the largest Peruvian mines boasts ownership from prominent companies such as Glencore PLC GLCNF, BHP Group Ltd BHP, Teck Resources TECK and Mitsubishi Corporation MTSUY and provides a significant contribution to Peru's economy and global copper supply.

The expansion project, approved through a Modification of the Environmental Impact Study (MEIA), aims to extend the mine’s productive lifespan from 2028 to 2036.

"The MEIA is an important milestone for Antamina and the Peruvian mining industry, and reaffirms our commitment to the country and the Ancash region,” said Victor Gobitz, CEO of Compañía Minera Antamina, the mine's operator.

“This approval broadens our horizon and allows us to continue working hand in hand with the authorities and communities to deploy a mature public and private institutional framework, which seeks to transform economic resources from mining into sustainable development for all."

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Situated in the Andes, around 270 kilometers north of Lima, the Antamina mine ranks among the world's top copper mines, producing 560,000 tons in 2022. However, in 2023, the production slowed to 435,000 tons.

The project plans to expand Antemina's area by 25% and deepen the open pit by 150 meters. The expected ore extraction will be up to 173,000 tons a day, with a waste movement of up to 742,000 tons.

The site will also receive a replacement for the primary ore crushing station and a new Waste 2 rock crusher. Two new tunnels will provide smother circulation of ore and waste, while the waste storage will increase by 26%. Dam storage capacity will expand to 1,572 million tons from the current 1,100 million tons.

With falling production and a shortage of new projects, Peru is looking to defend its position as the second-largest copper mining country by improving bureaucracy and expanding existing projects. The Antamina approval arrived days after President Dina Boluarte appointed Romulo Mucho, a veteran mining engineer, as the new energy and mining minister, per Reuter's report.

As the world transitions toward the low-carbon economy, extending the operational life of projects such as Antamina will prove crucial to help alleviate supply constraints and meet the growing demand for copper, supporting vital industries and infrastructure projects.

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