Codelco, Glencore to Build Smelter in Chile

Written by Amir Richani for Industrial Info Resources (Sugar Land Texas)

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Summary

Codelco and Glencore partner to construct a new 1.5 million-ton smelter in Chile. Construction could begin by 2030, with operations starting between 2032 and 2033.

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New Smelter for Chile

Codelco (Santiago, Chile) and Glencore (Baar, Switzerland) signed a memorandum of understanding (MoU) that contemplates the construction of a smelter with the capacity to process 1.5 million dry metric tons per year in Chile's Antofagasta region.

As part of the agreement, Glencore will develop a pre-feasibility study to be presented by May next year at the latest, allowing Codelco to decide whether to move forward.

If agreed, the companies expect to complete a feasibility study by 2027 and an environmental impact assessment in 2028, with the objective of beginning construction by 2030. Codelco highlighted that the smelter could begin operations between 2032 and 2033.

The state company would offer up to 800,000 metric tons of concentrate per year for at least 10 years to supply the plant, with an option to extend it for another 10 years.

"We believe this is a positive initiative for Chile's current and future mining ecosystem. The new smelter's proximity to other copper producers will provide logistical advantages, operational flexibility, and the opportunity to capture added value by refining concentrates close to the source of production," said Maximo Pacheco, president of Codelco's board of directors.

Chile Smelting Production

By the end of last year, Chile had the world's third-largest copper smelting production, accounting for 4% of global volumes and relying entirely on primary production, according to the International Copper Study Group's Factbook. China dominated the segment with 51% of global production, or 12 million tons per year.

Based on Chilean mining authority Cochilco's data, the country had a total smelter output of 994,000 metric tons and blister exports (smelter output) of 223,600 metric tons last year. China was the largest recipient of Chile's blister exports, accounting for almost half of the volumes.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

Key Takeaways

• Construction could begin by 2030, with operations starting between 2032 and 2033.
• The smelter would have a capacity to process 1.5 million metric tons per annum.
• In 2024, Chile accounted for 4% of the world's smelting production.

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