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Multinational miners BHP (NYSE:BHP) and Anglo American (OTCQX:AAUKF) urge the Chilean government to reduce bureaucratic obstacles, preparing to invest billions into expanding the country's copper output.
With demand for the metal expected to surge in the coming years, both companies warn that Chile risks losing its competitive edge if permitting delays persist.
"As a country, we must act with a sense of urgency if we want to execute growth projects." Alejandro Tapia, head of BHP's Escondida mine, said at the ongoing CRU World Copper conference in Santiago.
"Competition will be fierce, and Chile cannot lose this opportunity or its leadership position," he noted, according to Bloomberg.
Chile's copper sector, which provides a quarter of the world's supply, has long struggled with slow permitting, exacerbated by increasing environmental and social scrutiny. While President Gabriel Boric has pledged to cut approval timelines by a third, a bill to streamline the process remains stalled in Congress.
BHP, which has operated in Chile for over 30 years, is preparing to invest as much as $14 billion to revitalize its operations in the country. The company will start with a $2.3 billion plant upgrade at Escondido, the world's largest copper mine.
The Australian mining leader plans to restart its Cerro Colorado mine by 2028 for $1.3 billion, and invest another $1.3 billion in its Spence mine. Without these expansions, BHP's Chilean output could drop to 900,000 metric tons annually — far below the 1.4 million tons it aims to achieve in the next decade.
Anglo American Chile CEO Patricio Hidalgo warned that copper demand, driven by the energy transition and digitalization, could equal the output of 80 Los Bronces mines by 2040.
Los Bronces currently represents more than 2% of the global known copper resources, producing over 215,000 metric tons annually, and is one of the assets BHP targeted with a failed $49 billion bid last year.
"When one sees this structural gap that will occur in the copper market, we need much more agility to bring copper to the market," Higaldo said per Reuters.
Even state-owned Codelco is aggressively investing to rejuvenate its aging operations. After spending $4.4 billion in 2024, Codelco targets up to $5.6 billion in capex for 2025, aiming to recover from historic production lows and capitalize on long-term copper demand.
Despite recent copper's rout, Chairman Maximo Pacheco remains confident in the long-term outlook.
"I am convinced that the long-term fundamentals are very solid, very difficult to change," he said earlier this week.
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