7th Jun 2022 13:08
(Alliance News) - Antofagasta PLC on Tuesday said a pipeline leak has disrupted operations at the Los Pelambres deposit in Chile's Coquimbo Region.
The FTSE-100 listed copper producer said a leak was detected at the end of May at Los Pelambres. The leak was in the underground pipeline transporting concentrate from the concentrator plant to the port at Los Vilos.
A preliminary assessment has shown no indications of environmental damage.
Full access to the site is currently being blocked by community members who are in discussions with the local authorities and company representatives, Antofagasta said. Repairs will be carried out when access is secured.
"The mining operations and processing plant continue to operate, but with limitations due to road access restrictions and with the concentrates being stockpiled at the plant. Once the pipeline has been repaired the stockpiled material will be transported to the port using the spare capacity in the pipeline resulting in some rescheduling of sales and shipments," the company explains.
Shares in Antofagasta fell 1.9% to 1,507.50 pence each in London early on Tuesday afternoon.
The miner is assessing the causes of the leak and will apply any resulting recommendations to the concentrate pipeline and new replacement pipeline, which is expected to be in operation by 2025.
Capital expenditure for the repairs is "not expected to be material", the company said. Annual copper production for all of Antofagasta's mines is currently expected within a range of 640,000 to 690,000 tonnes, but the impact of the problem at Los Pelambres will depend on the duration of the shutdown and the resulting conditions, it said.
By Elizabeth Winter; [email protected]
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