Chile approved a $3 billion-plus investment in a copper mine owned by Anglo American Plc despite environmental concerns, a sign of the government’s commitment to boosting production of a key raw material in the clean-energy transition.
(Bloomberg) — Chile approved a $3 billion-plus investment in a copper mine owned by Anglo American Plc despite environmental concerns, a sign of the government’s commitment to boosting production of a key raw material in the clean-energy transition.
Government ministers voted unanimously to allow Anglo to add underground operations at its Los Bronces mine, overturning a decision by environmental regulators last year. The approval came with conditions regarding water monitoring and emission controls, the Environment Ministry said in a statement.
The ministerial vote was being keenly tracked by executives, bankers and traders attending a mining conference in Chile this week. Permits are getting tougher to obtain in Chile at the same time that tapping new deposits is getting harder and more expensive. That’s adding to supply constraints just as the shift away from fossil fuels pushes up demand for the wiring metal.
“We take this approval with responsibility to continue advancing towards a new way of doing mining, adapting to climate change and reducing the environmental footprint,” said Patricio Hidalgo, Anglo’s chief executive officer in Chile, in a company statement.
Los Bronces, where production is being constrained by deteriorating ore quality and water restrictions, has run into opposition for its plans amid concerns over the potential impact on glaciers and water availability. The London-based firm said the project, initially budgeted at $3.3 billion, won’t affect glaciers or require additional fresh water or tailings dams.
Chile, the biggest copper-producing nation, has seen its output stagnate as lower ore grades and water shortages offset new supply entering the market. At the same time, the government is looking for a bigger share of the windfall to fund social programs, proposing tax hikes that have seen companies hold off on investment decisions.
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