Chilean state copper producer Codelco has almost tripled the CAPEX for its San Antonio project in northern region III from USD 328 million to USD 962 million.

A company spokesperson told BNamericas that Codelco recently submitted an environmental impact assessment to the environment ministry with modifications to the original project, mainly involving doubling planned output from 30,000 tonne per year to 60,000 tonne per year.

The spokesperson said that "Putting together the planned investment for the original project and the modifications, the whole project's CAPEX now totals USD 962 million adding that the increase is the result of the acquisition of more equipment and higher input costs."

Codelco submitted the original EIA for evaluation in August 2009 with a budget of USD 328 million and received approval at end September 2011.

Shortly after, the company announced the modifications which were the result of new metallurgical studies and copper price projections, which allowed Codelco to increase the amount of reserves at the deposit.

The new EIA also includes increasing throughput from 20,000 tonne per day to 40,000 tonne per day and the building of a construction camp with capacity to host 3,000 workers. The project's useful life will be reduced from 23 to 15 years.

Codelco plans to start development in September and construction is scheduled to take three years. Start up has been moved from late 2014 to the last quarter of 2015.

The project aims at contributing to the long-term feasibility of Salvador, the company's smallest and least profitable division, by processing oxide ore from Mina Vieja, an old copper deposit previously operated as part of Salvador's mine plan.

(Sourced from www.bnamericas.com)