MVDP – (Expansion Project)

The MV Development Project is our brownfield expansion project at Mantoverde. The projected capital expenditure costs of the MV Development Project are fully financed and completion of the project is expected to enable us to process 236 million tonnes of copper sulfide reserves with a current 21-year expected mine life, in addition to our existing oxide mining process. Upon completion of the MV Development Project, we expect to increase the production at Mantoverde to approximately 122 thousand tonnes of copper in 2024 at an AISC of US$1.64 per payable pound; AISC will benefit from approximately 31 thousand ounces of gold per year in by-product over the life of the mine beginning in the first year following completion of the project.

 

The MV Development Project will involve the addition of a sulfide concentrator and tailings storage facility, and the expansion of our existing state-of-the-art desalination plant. Given the scarcity of water in Chile, particularly for use at mining operations, we believe that our ability to supply Mantoverde with consistent and expandable levels of water from our desalination plant provides us with a competitive advantage.

  • The feasibility study for the MV Development Project was completed in June 2018, and the Environmental Impact Assessment was approved by the authorities during that same year. Construction is subject to a “lump sum turnkey” engineering, procurement and construction contract with Ausenco that significantly limits our construction cost risk.
  • The capital cost of the project is estimated to be US$783 million and represents a capital intensity of approximately US$12,500 per tonne, which is substantially lower than the Latin American industry average of approximately US$20,000 per tonne as calculated by Wood Mackenzie. This is due to the relatively high grade of the ore together with the benefit of leveraging substantial existing infrastructure.
  • In February 2021, we secured a US$572 million debt financing package to fund the construction of the MV Development Project with a lending syndicate of international banks and export credit agencies, which comprises senior secured amortizing project debt facilities in an aggregate amount of US$520 million and a US$52 million senior secured closure bonding facility.
  • In addition, as part of the financing of MV Development Project, Mitsubishi Materials acquired a 30.00% interest in Mantoverde for US$275 million, subject to an additional contingent payment of US$20 million upon the satisfaction of technical requirements related to the increase in project ore reserves containing 500,000 tonnes of contained copper.
  • Mitsubishi Materials also agreed to provide a US$60 million cost overrun facility in exchange for additional offtake of copper concentrate production. Construction on the MV Development Project commenced in February 2021 and is scheduled to be completed by 2024.

OTHER GROWTH PROJECTS

  • After completion of the MV Development Project, we intend to focus on delivering the next phase of growth.  The MV Phase II Expansion is an opportunity to add a second ball mill to potentially provide incremental production of approximately 30 thousand tonnes of copper per year by 2026, which would increase production at Mantoverde to over 136 thousand tonnes of copper per year.
  • The estimated capital cost of the MV Phase II Expansion is US$326 million, which represents a capital intensity of approximately US$11,800 per tonne.
  • As an alternative to the MV Phase II Expansion, the MV Second Line Expansion is an opportunity to add a second 32-thousand-tonne-per-day concentrator to provide incremental production of approximately 50 thousand tonnes of copper per year, which we expect would increase production at Mantoverde to over 186 thousand tonnes of copper per year.
  • In addition to the MV Phase II Expansion and the MV Second Line Expansion, there is opportunity to extract approximately 500 thousand tonnes per annum of magnetite and 800 tonnes per annum of cobalt from waste streams, which would be by-products that contribute to a reduction of AISC

3D SITE PLAN VIDEO

Our values

safety

Safety

integrity

Integrity

efficient-performance

Efficiency

responsibility

Responsibility

consideration

Consideration

safety

Safety

integrity

Integrity

efficient-performance

Efficiency

responsibility

Responsibility

consideration

Consideration

brand

Mantos
Copper

Sliding Image Sliding Image
EnglishSpanish