SANTIAGO (Reuters) -Chile's state-run mining company ENAMI has kicked off a process to draw in investors for a $1.7 billion smelter in exchange for copper cathode supply, it said on Wednesday.  

The Hernan Videla Lira smelter in the Atacama region is undergoing renovations that will give it the capacity to process 850,000 metric tons of copper concentrate a year and produce 240,000 tons of copper cathodes, ENAMI said. 

The company is analyzing various financing options, and has brought on Chilean financial adviser Asset to gauge interest from investors in the coming weeks, it said.

ENAMI also created a new business unit to develop the smelter, called Proyecta ENAMI. 

Chile is the world's biggest copper producer, and sends the majority of its concentrate for processing in China.