Lundin seeks Chile permit for $150M Caserones upgrade

[Ben Graham]

Canada’s Lundin Mining (TSX: LUN) has applied for environmental approval in Chile for a $150 million project aimed at optimizing infrastructure and extending operating continuity at its Caserones copper-molybdenum mine to 2039.

The company submitted the project for review to Chile’s Environmental Evaluation Service on Jan. 6 through its local unit, SCM Minera Lumina Copper. Lundin said the plan focuses on operational improvements without changing approved production levels or fresh water consumption at the Atacama Region asset.

The decision comes as copper prices hit record highs, touching almost $14,000 a tonne in London earlier this week. The rally has fuelled a recent surge in sector mergers and acquisitions, as miners increasingly favour a “buy over build” strategy amid a looming supply deficit and the rising cost and complexity of developing new mines.

Caserones, located in the Tierra Amarilla commune, is expected to produce between 127,000 tonnes and 133,000 tonnes of copper this year, in line with the company’s guidance.

The proposal keeps the mine’s approved operating life and input and output volumes unchanged from the original 2010 permit. Planned works include new access roads, a fresh water reservoir, and two backup sulphuric acid storage tanks to secure supply, according to the environmental impact study. Lundin also plans to expand leaching capacity by 90 Mt and extend operations at the solvent extraction and electrowinning plant.

The project represents the next phase of the Caserones operational adjustment program, which received regulatory approval last year.

Top-ten ambitions

Lundin aims to rank among the world’s top ten copper producers, targeting annual output of 500,000 t of copper and about 550,000 oz of gold within three to five years.

The strategy centres on brownfield expansions at Candelaria and Caserones in Chile and Chapada in Brazil, along with new developments in the Vicuña district on the Chile–Argentina border, including the Josemaría and Filo del Sol  projects.

Caserones is owned 70% by Lundin and 30% by Japan’s JX Advanced Metals. The mine processes about 84 Mt/a of ore, has milling capacity of 100,000 t/d, and can produce up to 35,000 t/a of copper cathodes. While the operation forms part of Lundin’s district-scale Vicuña approach, declining ore grades in Chile are expected to reduce output by 2027 to 105,000-115,000 tonnes

To support potential future expansion, Lundin has stepped up exploration around Caserones, completing 18 km of drilling in 2025.