A major copper mining project in South America is moving into its next phase, as Freeport-McMoRan begins seeking approval for a multibillion-dollar expansion in Chile.
The U.S.-based company confirmed it has started the environmental permitting process for a proposed $7.5 billion expansion of its El Abra mine, located in northern Chile. The project is a joint venture with Chile’s state-owned mining company, Codelco.
If approved, the expansion would significantly increase copper production at the site. Company officials say output could reach around 300,000 metric tons per year — more than tripling the mine’s current capacity.
The El Abra operation produced about 91,400 tons of copper in 2025. Freeport holds a 51% stake in the project, while Codelco owns the remaining share.
Company representatives described the proposal as a long-term investment with the potential to reshape production levels in the region.
“This is a very significant project, not only because of the size of the investment, but also because of the additional production it would bring,” said Mario Larenas, Freeport’s manager in Chile, during a press briefing.
The expansion plan includes construction of a new concentrator plant and a desalination facility, which would support operations in the arid region. The company expects that, if approved, the project would begin operating sometime in the next decade.
Chile’s government has signaled support for the proposal, while also emphasizing the importance of environmental oversight. Mining Minister Daniel Mas said the approval process is expected to take several years and will require full compliance with environmental regulations.
“We have to go through all the necessary steps,” Mas said, noting that a final investment decision would come after the permitting process is complete.
Freeport first announced plans to expand El Abra in 2024 but delayed moving forward until now. The renewed push comes as global demand for copper continues to grow, driven in part by its role in energy infrastructure, electric vehicles, and technology manufacturing.
Questions remain about financing, particularly regarding Codelco’s share of the investment. Company officials declined to comment on how the Chilean partner would fund its portion of the project.