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Antofagasta to invest $1.5 bln for water transportation system in Chile copper mine

Londonlisted Antofagasta on Wednesday signed a $1.5 billion investment for a water transport system with a firm owned by Madridbased Almar Water Solutions and Chilebased power transmission business Transelec for its Centinela mining operation in Chile.

In 2022, Chile's SMA environmental regulator submitted two charges versus the Centinela copper deposit due to its effect on a water source and local wildlife.

CONTEXT

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

Copper need is expected to grow steadily in the coming. years, yet recent price dives appear to be 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. triggering issue over the fresh water supply.

Additionally, miners and countries are wanting to increase. and resume production of copper from mines in the middle of a bullish. outlook.

BY THE NUMBERS

The World Resources Institute stated nearly 16% of the world's. land-based crucial mineral mines and districts are located in. locations facing high or incredibly high levels of water stress.

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

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