Antofagasta plc has announced the expansion of its subsidiary Minera Los Pelambres on Thursday morning. The expansion, which received approval, is expected to add roughly 60,000 tonnes of copper yearly to the mine’s production.

Minera Los Pelambres is 60% owned by Antofagasta and 40% by consortiums led by JX Nippon.

The project is valued at $1.3 billion. Additionally, construction is expected to begin at the beginning of 2019. The first production is expected to be delivered in the second half of 2021.

Following the plant’s expansion, throughput is set to increase from the current 175,000 capacity of ore per day to 190,000. Moreover, annual copper production will increase from 40,000 tonnes in the first year to 70,000 tonnes after 15 years. Over the full 15-year period, production is predicted to average roughly 60,000 tonnes.

Antofagasta is a Chile-based copper mining group that has a significant by-product production and interests in transportation.

It has been listed on the London Stock Exchange since 1888. 65% of ordinary share capital is controlled by Luksic family of Chile with 35% free float.

CEO of Antofagasta plc, Ivan Arriagada, has commented on the confirmed expansion:

“The expansion of our world-class Los Pelambres mine is an important step forward in the advancement of the Group’s organic growth pipeline. The expansion project will add 60,000 tonnes a year of low cost copper production at this long-life operation and will ensure that it remains a first quartile producer for many years to come.”

“The project includes the construction of a desalination plant and water pipeline which will also benefit the existing operation in cases of prolonged or severe drought, and for a potential further phase of expansion.”

At the end of October, CEO Ivan Arriagada addressed the copper outlook, telling Bloomberg that it was “quite positive”. Indeed, he highlighted the physical demand of copper in emerging markets, using China’s over 5% as an example.

In October, we reported that Antofagasta announced a downgrade in their full-year output guidance for copper. This decision was made following an on-year production and grade dip in copper gold. Equally, in July we took a look at the company’s half year performance.

At 13:46 GMT today, shares in Antofagasta plc (LON:ANTO) were trading at +4.41%.