BHP to Invest $12 Billion in Chile Copper Operations Amid Labor Protests

BHP has announced plans to invest over $12 billion to expand its copper operations in Chile, focusing on the Escondida and Spence mines in the Antofagasta region. The investment aims to counter an expected production decline between 2027 and 2030. At the same time, the company faces worker protests over alleged labor abuses.

Alexis Barrera, president of the union at Minera Escondida, stated that workers began protesting following the suicide of a maintenance operator on November 14 after being notified of his dismissal. "We are asking BHP to stop violating Chilean labor laws and abusing dismissals, which it applied even though it knew the worker was on long-term medical leave," Barrera said. He also mentioned that the company offered the operator "an improved way out to erase the trace of the legal infringement," and that there have been other cases of unfair treatment, including arbitrary evaluations of performance bonuses.

BHP has received recognition for having the highest female participation among mining companies in Chile, with women making up 42% of its workforce. This earned BHP an award from Women in Mining, but the recent allegations have cast a shadow over the company's practices.

Expansion Projects to Boost Production

BHP plans to optimize the concentrator and leach areas at its mining operations in Chile to address declining ore grades and increased rock hardness at Escondida, the world’s largest copper mine, and oxide depletion at Spence. These conditions are expected to lead to a decline in copper production from an average of 1.5 million metric tons in 2025-26 to 1.2 million metric tons in 2027-30.

The investment aims to help BHP recover production to 1.4 million metric tons annually by 2031 through optimization of leaching processes at Escondida and Spence. Other initiatives include extending Cerro Colorado’s life until at least 2029 and building a new concentrator at Escondida with an initial capacity of 125,000 tons per day.

BHP also plans to increase the throughput rate at the Laguna Seca concentrator at Escondida to 40,000 tons per day and expand desalination capacity at the Puerto Coloso plants from 3,700 liters per second to 4,700 liters per second. The company is also exploring new flotation technologies and considering a new mine design at Escondida, as well as fleet upgrades.

Major projects include:

• Spence Chalcopyrite Leaching: $140 million, expected to add 30,000-40,000 tons in 2027-28.
• Cerro Colorado Concentrator Expansion: $300 million, increasing output by 130,000-145,000 tons by 2027-28.
• Spence Concentrator Expansion: $600 million, boosting output by 10,000-15,000 tons by 2028-29.
• Demolition of Los Colorados Concentrator: $700 million, scheduled for 2028-29.
• Laguna Seca Expansion: $2.6 billion, adding 50,000-70,000 tons in 2030-31.
• Escondida Leaching: $1.3 billion, projected to increase output by 35,000-55,000 tons between 2030-32.

BHP holds a 57.5% stake in Escondida, with Rio Tinto owning 30%, and the Jeco consortium holding 12.5%. Spence and Cerro Colorado are wholly owned by BHP.