BHP to Invest $2 Billion in Escondida Concentrator Optimization

Australian iron ore mining company BHP is advancing with a $2 billion (A$3.16 billion) investment to optimize the concentrator at Escondida, the world’s largest copper mine. This is part of a broader $10.8 billion (10.18 trillion pesos) investment plan in Chile, according to a Reuters report.

BHP plans to submit the investment plan for environmental permitting shortly. The announcement coincided with a visit to the mine by Chilean Finance Minister Mario Marcel, who emphasized that foreign investment in Chile largely comes from companies like BHP that are expanding and reinvesting in existing operations.

This initiative marks the first step in a decade-long investment strategy announced by BHP in November 2024. Escondida president Alejandro Tapia stated: “It is a plan that doesn’t just allow us to maintain production at our operation but means making a $10 billion investment that will benefit the country and the region of Antofagasta.”

In the first half of the 2025 financial year, Escondida saw a 22% increase in copper output, contributing to a total production rise of 10% to 987,000 tonnes.

With the global shift towards lower-emission energy, copper production has become increasingly important. BHP anticipates a global copper deficit of 10 million tonnes within the next decade and plans to invest at least $11 billion in Escondida and other Chilean projects to meet rising demand.

Last month, BHP and Lundin Mining completed a joint acquisition of Filo, a Canadian exploration and development company, for C$4 billion ($2.78 billion). This acquisition grants both companies a 50% interest in Filo and its FDS copper project in Chile’s Atacama region.