Wedoany.com Report-Feb 27, BHP, an iron ore mining company, plans to invest $2 billion (A$3.16 billion) to enhance the concentrator at Escondida, the world’s largest copper mine, located in Chile. This step forms part of a larger $10.8 billion (10.18 trillion pesos) investment strategy for the country, as reported by Reuters. The company intends to submit this plan for environmental permitting soon. The announcement aligned with a visit to the mine by Chilean Finance Minister Mario Marcel, who noted that firms like BHP, already operating in Chile, drive most foreign investment through expansion and reinvestment efforts.

Chile’s Finance Minister, Mario Marcel, said that most foreign investment in Chile comes from companies like BHP expanding and reinvesting in their existing operations.

The project initiates a ten-year investment framework BHP unveiled in November 2024. Alejandro Tapia, president of Escondida, stated: “It is a plan that doesn’t just allow us to maintain production at our operation, but means making a $10bn investment that will benefit the country and the region of Antofagasta.” During the first half of the 2025 financial year, Escondida’s copper production rose by 22%, boosting total output by 10% to 987,000 tonnes. This increase reflects the growing demand for copper amid the global transition to lower-emission energy sources.

BHP forecasts a worldwide copper shortage of ten million tonnes within the next ten years. To address this, the company plans to allocate at least $11 billion across Escondida and other Chilean projects to meet future needs. Separately, BHP and Lundin Mining finalized a joint purchase of Filo, a Canadian exploration and development firm, for C$4 billion ($2.78 billion) last month. This deal grants both companies a 50% stake in Filo and its FDS copper project in Chile’s Atacama region.

The investment in Escondida aims to sustain and enhance its output capacity while contributing to Chile’s economy, particularly in the Antofagasta region. The broader strategy underscores BHP’s focus on securing copper supplies as global demand rises. The collaboration with Lundin Mining further expands BHP’s footprint in Chile’s copper sector, leveraging the Atacama region’s resources. These efforts align with the company’s long-term vision to support energy transitions while maintaining operational stability.

The financial commitment, paired with environmental permitting preparations, positions BHP to strengthen its role in the global copper market. Marcel’s visit underscores Chile’s appeal to established investors, reinforcing the country’s significance in mineral production. The production gains at Escondida this year highlight its operational strength, setting the stage for sustained growth through the planned investments.