查看配图Pucobre and Codelco executives mark the formation of their Tovaku joint venture in Santiago on Aug. 25. Credit: Codelco.
Chile’s state-owned Codelco and Pucobre (Santiago: PUCOBRE) won environmental approval on Oct. 23 for their $870-million (C$1.23 billion) Tovaku copper project, advancing a partnership that would add output without an upfront cash contribution from Codelco.
The proposed open-pit operation, 70 km east of Tocopilla in northern Chile’s Antofagasta region, would produce 46,000 tonnes of copper cathodes annually over a 21-year mine life. The partners are targeting production in 2030.
“Partnerships are a pillar of Codelco’s growth strategy,” chairman Bernardo Fontaine said in an Aug. 25 statement announcing the joint venture.
Tovaku offers Codelco a way to develop its concessions while limiting immediate demands on its finances. Pucobre, which owns 60% of the venture, is responsible for financing development and construction. Codelco contributes the mining concessions for its 40% stake, with funding advanced on its behalf recoverable from future project distributions, Codelco said.
Permits, funding
Codelco has an investment pipeline of $34 billion that it can’t finance entirely from its own resources, Fontaine said in an Aug. 16 interview with Canal 13.
Antofagasta’s environmental evaluation commission approved the project after a 450-day assessment, about 55% shorter than the 2025 average for environmental impact studies, Chile’s Environmental Assessment Service (SEA) said on Nov. 4. It was the fastest assessment of a project worth more than $500 million since 2018, the agency said.
The approval allows the partners to advance remaining permits and preparations for construction. Their earlier timetable called for work to begin in the second half of 2027, subject to permitting and financing.
The partners formed Minera Puntilla in August to develop Tovaku, following an exploration agreement signed in 2009. Pucobre carried out drilling, geological work and engineering studies on concessions provided by Codelco.
Annual material movement would average 47.5 million tonnes, peaking at 68.2 million tonnes in the 18th year of operations, Pucobre said in its environmental submission.
The project advances as Codelco faces renewed pressure on production. At a Nov. 5 shareholders’ meeting, Fontaine cut the outlook for this year to slightly above 1.2 million tonnes, down from the previous 1.34-million-tonne target, according to Reuters.
Fontaine told Radio Duna on Monday that output would continue declining unless Codelco expanded partnerships with private companies. The state miner lacks the capital and management capacity to develop about 1 million hectares of unexploited concessions, he said, according to Reuters.
Solar, seawater
Pucobre puts the investment at $650 million for the mining project and $220 million for a solar park. The planned 193-megawatt solar park, which would include battery storage, would cover 340 hectares and contain 336,600 panels, SEA said in its Oct. 15 assessment.
Tovaku would process low-grade copper ore through crushing, acid curing, leaching, solvent extraction and electrowinning to produce copper cathodes.
The 72.5-km seawater pipeline would transport up to 425 litres per second from the Tocopilla Thermal Power Plant to the project, SEA said. A third-party supplier would provide the seawater.
The project also includes two reverse-osmosis plants to treat seawater and produce drinking and industrial water for the operation, SEA said.
A separate 27-km, 220-kilovolt transmission line would connect the project to Chile’s national grid, the agency said.
Construction would employ about 1,000 people at its peak, with about 700 workers during operations, according to Pucobre.
Pucobre shares ended Nov. 6 at 17,714 Chilean pesos apiece, 0.2% stronger than the previous close, valuing the company at about $2.26 billion.