Codelco Plans $2 Billion Underground Mine at Chuquicamata

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Researched by Industrial Info Resources (Sugar Land, Texas)--Chilean copper miner Codelco (Santiago) is advancing the Chuquicamata copper mine's transition from open pit to underground mining. The project, part of the company's North Division, aims to mine the resources located under the current open pit, which will stop being profitable by the end of the next decade.

Drilling campaigns have demonstrated that below the pit bottom is a potential 2.3 billion tons of ore with a copper grade of 0.81%, located at a depth of 1,800 meters. The underground operation will process 140,000 tons per day and will have an output capacity of 340,000 tons of fine copper per year, for at least 50 years. Initial construction is planned to begin in 2010, with production from the underground mine starting in 2018. This initiative requires an estimated investment of $2 billion. SKM Minmetal (Santiago) is the lead consultant for this project.

Located in the Antofagasta Region, Chuquicamata is one of the world's largest open pit copper mines, covering a surface area of almost 8,000,000 square meters and a pit depth of 850 meters. Chuquicamata started operations in 1915.

Codelco is the world's largest copper producer. The company operates through five divisions: North, Salvador, Andina, El Teniente and Ventanas. The company also owns and operates the Gabriela Mistral mine and has a 49% interest in El Abra mine. Furthermore, Codelco has a stake in other mining ventures focused on geological exploration, both in Chile and abroad.

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