BHP Billiton to Build Replacement Concentrator at World's Largest Copper Mine in Chile

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Researched by Industrial Info Resources (Sugar Land, Texas)--BHP Billiton (NYSE:BHP) (Melbourne, Australia) is planning to build a concentrator plant at the Escondida mine, the world's largest copper mine, located in the Atacama Desert in northern Chile at an altitude of about 3,100 meters above sea level.

The project, which is estimated to cost up to $1 billion, entails the addition of a third concentrator plant to process about 140,000 tons per day of ore in order to maintain current output. The plant will replace the Los Colorados concentrator but will have a higher throughput capacity to offset falling grades. Los Colorados is expected to be dismantled in 2013 to make room for a future pit expansion. BHP is performing in-house conceptual engineering. If approved, the project could begin construction by the end of 2009 and be completed by 2012 or 2013.

The Escondida mine became operational in 1990. It has been through several expansions, which have increased the mine's annual production capacity of fine copper from 320,000 tons to more than 1.2 million tons. The site includes two open pit mines, Escondida and Escondida Norte; two concentrator plants, Laguna Seca and Los Colorados; and an electrowinning plant. BHP also built a seawater desalinization plant in Puerto Coloso to supply part of the operation's water consumption.

BHP is the main owner and operator of the mine, holding a 57.5% stake. In Chile, BHP also owns the Cerro Colorado and Spence mines. Rio Tinto PLC (NYSE:RTP) (London) holds 30% of Escondida, while 10% is held by a Japanese consortium led by Mitsubishi Corporation (OTC:MSBHY) (Chiyoda, Tokyo). The remaining 2.5% is held by the International Finance Corporation (Washington, D.C.).

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