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Antofagasta indications $1.5 bln financial investment offer for water transport system in Chile mine

London-listed Antofagasta on Wednesday signed a. $ 1.5 billion financial investment offer to improve water system at its. Chile mining operations.

The deal, signed with a firm owned by Madrid-based Almar. Water Solutions and Chile-based power transmission company. Transelec, is to establish a water transport system that will. supply non-desalinated seawater for its Centinela mining. operation.

Centinela's operations are set to get $600 million. in 2024 from the consortium.

In 2022, Chile's SMA ecological regulator submitted 2. charges against the Centinela copper deposit due to its impact. on a water source and regional wildlife.

CONTEXT

Experts have actually anticipated a deficit of the red metal from this. year as Panama bought the closure of First Quantum's. mine and producers like Anglo American and Vale Base. Metals both cut their supply estimates for 2024 and 2025.

Copper demand is expected to grow gradually in the coming. years, yet current rate jumps seem driven in part by. speculative activity.

WHY IT is very important

Chile, where Antofagasta's operations are based, has. suffered a 15-year drought, sucking water from reservoirs and. sparking concern over the fresh water supply.

Furthermore, miners and countries are looking to increase. and reopen production of copper from mines amidst a bullish. outlook.

BY THE NUMBERS

The World Resources Institute said almost 16% of the world's. land-based critical mineral mines and districts lie in. areas facing high or extremely high levels of water tension.

The task at Centinela in Chile consists of the building and construction. of 2 144 km-long (89.48 miles) water pipelines that transfers. seawater to its ports and helps with the growth of the mine.

The expansion at Centinela would improve yearly copper output. from the Centinela mine by 140,000 lots, making it one of the. world's leading 15 such mines by output.