BHP targets $5B Escondida upgrade to fight grade decline

BHP (ASX, LON: BHP) has kicked off the environmental permitting process for a new concentrator at its giant Escondida copper mine in Chile, a project worth around $5 billion aimed at sustaining output as ore grades decline.

The proposed investment, estimated between $4.4 billion and $5.9 billion, would replace capacity from the ageing Los Colorados plant and form a key part of BHP’s broader $10.8 billion, 10-year growth plan unveiled in late 2024. 

The world’s largest mining company submitted the proposal through an Environmental Impact Declaration, a faster review process than a full Environmental Impact Study, and said construction could begin in early 2027 if approved.

The new concentrator would allow Escondida, the world’s largest copper mine, to maintain processing capacity at 460,000 tonnes per day and keep production within approved levels, underscoring its importance to Chile’s mining pipeline and global copper supply.

The project is also expected to generate significant economic activity, with an average workforce of 2,500 during construction and peaks of up to 6,000, while first production is targeted between 2031 and 2032 as part of a multi-year buildout.