BHP seeks to restart Cerro Colorado mine with $1.5B investment

BHP (ASX: BHP) has begun the process to reopen the Cerro Colorado copper mine in Chile, targeting an investment of $1.5 billion to keep the operation running for 20 years.

On Wednesday, the Australian miner said it has applied for a new environmental permit for Cerro Colorado. Located in the Atacama Desert, the mine is part of BHP’s Pampa Norte division in northern Chile that also includes the Spence operation.

The copper mine has been closed since late 2023 after it was denied its water permit following protests by local communities.

In an attempt to restart the operation, BHP said it would explore the use of leaching technologies and desalinated water. Under its application, it laid out plans to use treated wastewater transported through a pipeline of more than 100 km from the municipality of Alto Hospicio to the mine site.

This initiative, according to the company, would enable the mine to run for 20 years. Its total cost is estimated at $1.5 billion.

BHP had previously planned to reboot the Cerro Colorado operation by the end of this decade. The mine represents a small part of its Chilean portfolio, in comparison to the giant Escondida mine and the nearby Spence growth project.