SANTIAGO, June 18 (Reuters) - Anglo American's copper
output at its Los Bronces mine in Chile is expected to fall
nearly a third from average historical levels next year as the
miner pauses a processing plant for maintenance, the company's
Chile head said on Tuesday.
Anglo American previously said it would suspend the plant,
which is the smaller and older of two at the site, in mid-2024,
but had not disclosed the estimated hit on production.
Los Bronces is Anglo American's flagship copper mine,
representing about a fourth of its copper output worldwide,
which spans several sites in Chile and Peru.
Demand for the red-metal has surged worldwide, and BHP
made an unsuccessful $49 billion offer for rival Anglo
American this year in a play for its smaller rival's
copper mines.
The maintenance on the processing plant is expected to take
at least a couple of years, said Patricio Hidalgo, CEO of Anglo
American in Chile, at an event.
"It will depend on the input and the ore grade, so it's not
one-to-one, but it's about 30% as of next year, compared to what
we historically have produced," he told reporters.
Anglo American is aiming to compensate for falling
production levels dinged by hard, lower grade ore, and hopes to
start new extraction in 2027, after delays due to permitting and
other factors.
Suspending the processing plant, called Los Bronces, will
give the company time to move ahead with preparations for new
extraction phases, including securing an additional water supply
and moving the Perez Caldera tailings dam.
"It opens a window for us," Hidalgo said. "We have to see
when the optimal window of time is to remove the dam."
Los Bronces is majority owned by the miner's local unit,
Anglo American Sur, with a stake just over 50%. A joint venture
between Japan's Mitsui ( MITSF ) and Chile's state-run Codelco
owns nearly 30%, while Japan's Mitsubishi ( MSBHF ) owns the
remainder.