en.Wedoany.com Reported - Australian mining company BHP announced on July 7, 2026, that its Escondida copper mine expansion project in Chile has received its first major environmental approval. The Antofagasta Environmental Assessment Commission in Chile has approved early works involving sulfide leaching and power upgrades. This marks the official launch of a series of expansion projects with a total investment of up to $14.7 billion.
The Escondida copper mine is the largest copper mine in the world. BHP holds a 57.5% stake in the mine, Rio Tinto holds 30%, and the remaining shares are held by a Japanese consortium. The first phase of the approved project focuses on sulfide leaching technology upgrades and power system improvements, costing approximately $1.3 billion. After completing these foundational works, BHP plans to proceed with a series of major upgrades to the mine and processing facilities.
As the world's largest copper miner, BHP is facing challenges from declining ore grades at its Chilean operations. To maintain and expand production, the company must make substantial capital investments. According to the plan, BHP expects to double its global annual copper production to over 2 million tonnes by the mid-2030s. This ambitious target heavily relies on the successful expansion of its Chilean operations. The company anticipates investing between $10.7 billion and $14.7 billion in its Chilean operations over the coming years.
In addition to the Escondida expansion, BHP has been active in Chile recently. Last week, the company applied to restart and expand the Cerro Colorado copper mine in northern Chile, with an estimated cost of $1.5 billion. In March of this year, the company also applied to build a new concentrator at Escondida, with an estimated cost of approximately $5.9 billion.
Copper is a core metal for the clean energy transition and data center construction. A study by S&P Global in January 2026 projected that copper demand will rise to 42 million tonnes by 2040, driven by electrification, digitalization, and demand expansion in AI, data centers, and electric vehicles, potentially creating a supply gap of about 10 million tonnes. BHP's expansion is a bet on this long-term demand outlook.
