4th Oct 2022 16:01
(Alliance News) - Antofagasta PLC on Tuesday said the completion of its desalination plant project at Los Pelambres will be delayed as sea conditions continue to prevent the resumption of marine construction work.
Los Pelambres is a sulphide deposit, based in Chile's Coquimbo region, which produces copper concentrate containing gold and silver through a milling and flotation process.
On September 12, the Chile-based copper mining group announced that severe sea swells had overturned a construction platform working at the desalination plant.
The Chilean government's environmental regulator, the Superintendency of Environment, initially halted all marine works pending the recovery of lost equipment. The restriction has now expired, though conditions are still preventing the complete recovery of equipment.
Antofagasta said that it has drawn up a revised schedule to accommodate ongoing delays to construction, taking into account the continuing impact of sea swells.
It did not expect there to be a material increase in the total capital cost of the project as a result, nor has the overturned platform caused any significant environmental impact to date.
Copper production in 2022 is still expected to reach the lower end of the 640,000 to 660,000 tonne guidance range.
The completion of the plant is now estimated to impact previously planned production in 2023 by approximately 30,000 tonnes.
Antofagasta shares were trading 1.3% higher at 1,140.50 pence each in London on Tuesday afternoon.
By Holly Beveridge; [email protected]
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