en.Wedoany.com Reported - A report jointly released by consulting firm Plusmining and the Chilean Desalination and Reuse Association (Acades), titled "Economic and Regulatory Keys to Desalination Costs in Chile," identifies energy, initial investment, and project development timelines as the main factors determining desalination costs in the country.

The report shows that capital expenditure (CAPEX) and energy costs together account for 80% to 90% of total water costs. In projects that combine desalination with water conveyance systems for high-altitude mining operations, energy consumption related to pumping can represent a significant portion of operating costs.

Desalination has become a strategic infrastructure for Chile's mining industry. The report cites projections from the Chilean Copper Commission (Cochilco), stating that by 2034, approximately 66% of water used by Chile's copper mines will come from marine sources, primarily desalinated seawater.

The time required for project development also significantly impacts costs. The study indicates that processes such as engineering design, environmental assessment, and permitting can take 8 to 12 years, increasing the risk of regulatory changes and affecting financing conditions. The report identifies the discount rate as one of the financial variables with the greatest impact on levelized water costs, noting that relatively small changes in this metric can significantly alter the expected return on investment.

On the operational side, the report points out that electricity costs account for 20% to 30% of total desalination costs, depending on project characteristics. This impact is particularly pronounced for systems requiring long-distance or high-lift water conveyance, such as those serving multiple mining operations in northern Chile. Consequently, the competitiveness of desalination is closely linked to factors such as the availability of power infrastructure, energy supply costs, and power system operating conditions.

The report concludes that opportunities exist to reduce costs through a more competitive energy mix, greater investment certainty, and more efficient management of project development cycles. Under specific scenarios, these variables could reduce unit costs by 10% to 30% while maintaining the same technology and geographic conditions.

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