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Capstone Copper (TSX: CS; ASX: CSC) will invest $3 billion in Chile’s Atacama region to double its copper production in the country by 2031, according to the country’s mining ministry.
The investment includes $2.3 billion for the Santo Domingo copper project, which is in the early stages of construction, and about $220 million for two expansion projects at the nearby Mantoverde mine.
Capstone also plans to spend $165 million on mine development, $150 million on sustaining capital and $70 million on exploration.
Chile’s Economy and Mining Minister Daniel Mas highlighted the potential benefits of the investment for employment, copper output, small and medium-sized businesses and government tax revenue.
The Canadian miner plans to share infrastructure and operations between Santo Domingo and Mantoverde, located about 35 km apart, to improve efficiency and reduce development and operating costs as it expands copper production in Chile.
Construction at Santo Domingo is expected to employ more than 8,000 workers, with about 1,500 jobs anticipated once the mine enters operation.
The project accounts for the largest share of the company’s planned investment, making its development central to achieving the targeted production increase by 2031.
Growth projects
At Mantoverde, Capstone is advancing two near-term projects with combined investments of about $220 million to increase copper output and potentially introduce cobalt production.
The $176-million Optimized Mantoverde project, already under construction, is expected to add 20,000 tonnes of copper annually to the mine’s current production of approximately 95,000 tonnes.
A separate $45-million pyrite expansion is designed to contribute another 3,500 tonnes of copper per year while creating the potential to produce cobalt. Completion is scheduled for early 2028.
Together, the two projects could lift Mantoverde’s annual copper output to approximately 118,500 tonnes, an increase of nearly 25% from current levels, as Capstone advances its broader growth strategy in Chile.