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[ferro-alloys.com]Chilean copper producer Antofagasta plans to resume work on two mine expansion projects which had been suspended in the wake of the COVID-19 pandemic, the company said Aug. 20.

Work on the $1.1 billion project at its flagship Los Pelambres mine is restarting in stages during the second half of the year following the adoption of strict protocols designed to protect workers' health.

Suspended since the start of the outbreak in March, the delay is expected to increase the cost of the project by $50 million and put back commissioning by six months.

Mining companies in Chile have largely continued to operate through the pandemic despite the South American country suffering one of the world's outbreaks of the disease. However, staff numbers have been reduced to prevent infection meaning that non-essential roles such as maintenance and construction have been largely suspended.

But as the number of infections decline, companies are now looking to restart construction work. Earlier this month, state-owned Codelco announced it is resuming work on the underground mine at Chuquicamata.

The London-listed company said it is reviewing the design of the desalination plant at Los Vilos which will supply water to Los Pelambres mine to allow a phased expansion from 400 liter/second to 800 liter/second to cover local water demand, which could cost an additional $150 million.

Meanwhile, work is resuming on the $190 million Chloride Leach project at its Zaldivar mine, in which Barrick Gold holds a 50% stake.

Antofagasta posted profits of $245.1 million for the first six months of the year, down 50% from a year earlier, reflecting the lower copper price as well as an impairment related to the sale last March of a stake in coal-fired power plant in northern Chile.

CEO Ivan Arriagada said that the company remains on track to produce towards the lower end of its forecast of 725,000-755,000 mt for 2020, assuming that the pandemic does not force the closure of any operations.

(S&P Global Platts)

• [Editor:王可]