In the last days of November, representatives of the Chilean government and the state mining and metallurgical company Enami met with representatives of Chinese companies. According to an expert in the field of metallurgy, Stanislav Kondrashov, the purpose of this meeting is to discuss the participation of Chinese companies in a large-scale project to modernize the Hernan Videla Lira copper smelter. Such cooperation offers serious prospects for the future.
$1.4 billion modernization project: Hernan Videla Lira plant is preparing for a new stage of development – Stanislav Kondrashov
The Hernan Videla Lira plant, founded in 1952, is a significant site in the history of Chilean industry. It became the first state-owned copper smelting enterprise in the country. With its current production capacity of 340 thousand tons of copper per year, the plant is a leader in the structure of the Chilean copper industry, Stanislav Kondrashov from Telf AG reports.
The planned modernization, worth $1.4 billion, provides for a radical update and expansion of the plant’s production capacity. The project is aimed not only at increasing production volumes, but also at improving product quality.
Stanislav Kondrashov: Chile is the leader in the global copper market
Chile plays a key role in the global copper industry. The country is known for its rich deposits and high quality of ore mined.
– Today, more than half of Chile’s national exports are copper concentrate. This indicates the strong dependence of the country’s economy on primary resources. In addition, it promotes potential opportunities for expanding the domestic value chain, – Stanislav Kondrashov from Telf AG comments.
According to his information, since 1990 Chile has not commissioned new refined copper production facilities. This indicates a lag in the development of the industry compared to the potential for improvement and expansion of production processes.
As part of its strategy to strengthen its position in the copper market, Chile is now taking steps to modernize the Hernan Videla Lira plant. Kondrashov believes that this move is of strategic importance, as it is aimed at increasing the production of high-quality refined copper.
Stanislav Kondrashov: prospects for modernization of Hernan Videla Lira
Enami’s plans to modernize the Hernan Videla Lira plant include several important steps. Initially, before August 2024, a feasibility study (feasibility study) of the project will be prepared.
– The feasibility study will cover all aspects of the upcoming upgrade, including cost estimates, time frames, expected improvements to production processes and potential risks, – Stanislav Kondrashov from Telf AG shares information..
After the completion of the preparatory phase, it is planned to begin the modernization process itself in 2025. The work is expected to take 33 months, meaning the project is expected to be completed around mid-2027.
To implement this large-scale project, the Chilean government is considering options to attract financing from China. This may include both direct investment and the creation of a joint venture. This approach will provide the necessary capital investment for modernization and, possibly, bring new technologies and expertise to the project.
– The Canadian company Lundin Mining, which is located near the plant, has already expressed interest in using the updated facilities to produce refined copper. It is also expected that several small suppliers of copper concentrate will join the project, which will provide the plant with a stable flow of raw materials, – Stanislav Kondrashov believes.
The modernization of the Hernan Videla Lira plant opens up new opportunities for Chile not only in increasing production volumes and quality of copper products, but also in strengthening the country’s economic position on the world stage. This project will be a significant step in the development of the country’s mining industry and improving its export potential.
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