Capstone Approves $176 Million Expansion for Chilean Copper Project Amid Rising Costs

What's Happening?

Capstone Copper has announced its decision to proceed with the expansion of its Mantoverde copper project in Chile, despite a 20% increase in projected costs. The expansion, known as Mantoverde Optimized, will increase the daily processing capacity of the sulphide concentrator from 32,000 to 45,000 ore tonnes. This enhancement is expected to produce an additional 20,000 tonnes of copper and 6,000 ounces of gold annually, extending the mine's life from 19 to 25 years. The project, now estimated to cost $176 million, is attributed to scope changes and inflation. Capstone aims to more than double its annual copper output to approximately 400,000 tonnes in the coming years, up from 2024's 180,000 tonnes. The Mantoverde facility is projected to produce between 97,000 and 112,000 tonnes of copper this year.

Why It's Important?

The expansion of the Mantoverde project is significant for Capstone Copper as it positions the company to increase its copper production substantially, aligning with global demand for the metal. Copper is a critical component in various industries, including electronics and renewable energy, making its production vital for economic growth and technological advancement. The decision to proceed with the expansion despite rising costs reflects Capstone's confidence in the project's potential returns and its strategic importance. The increased production capacity will enhance Capstone's competitive position in the copper market, potentially leading to higher revenues and market share.

What's Next?

Capstone plans to complete construction within a year, with a ramp-up period expected in the fourth quarter of 2026. The facility aims to reach its new throughput level by early 2027, with increased cathode production starting in the second quarter of that year. The company has also increased its global capital expenditure forecast for 2025 to $375 million, up from $315 million, to support this and other projects. Stakeholders, including investors and industry analysts, will likely monitor the project's progress and its impact on Capstone's financial performance and market position.