Mining giant Glencore Plc plans to invest US $1.5 billion to expand its Antapaccay copper mine in Peru, up from a previously announced US $590 million, to jump-start the stalled mine expansion project, according to a company executive. The project is key to sustaining copper production.
Carlos Cotera, general manager of Antapaccay Mining company, told Reuters Glencore was pressing ahead with the "Coroccohuayco" project, which aims to extend the mine's life for decades. In recent years, production has stalled due to the decline in ore grade quality.
"The Coroccohuayco project means extending the life of the mine to at least 2045 or 2050, that's our guess," Cotera said on the sidelines of a mining forum in Lima on Monday evening. "We estimate the investment will be more than $1.5 billion."
The electric car revolution has sharply boosted estimates for global copper demand in the coming years, with many analysts predicting supply shortages after production and investment in key regions slowed. Peru is the world's second largest copper producer, while neighboring Chile is the No.
Cotera said the expansion project was important as annual production at Antapaccay, one of Peru's largest copper mines, has steadily declined from 221,000 tonnes in 2016 to about 150,000 tonnes now.
"We believe copper production will reach around 250,000 tonnes per year for at least the first 10 years of Coroccohuayco's operation," Cotera said.
The project has been delayed by social unrest in the province where the mine is located. In September 2022, Espinal residents opposed to the expansion blocked a section of an Andean mining corridor for several days.
Antapakai said at the time that the plan was "under review." The corridor was also blocked during the unrest that followed the ouster of former president Pedro Castillo.
Cotera said it is currently reviewing a "pre-feasibility study" for the Coroccohuayco, with approval expected in the second half of 2024, followed by a full feasibility study.
