Capstone Copper Plans US$3 Billion Chile Investment to Double Output by 2031

Capstone Copper (TSX:CS,ASX:CSC,OTCPL:CSCCF) said on Monday (October 26) that it plans to spend US$3 billion in Chile’s Atacama region to double its copper production in the country by 2031.

The miner announced the plan at a ceremony at its Mantoverde mine led by Chilean President José Antonio Kast.

Chile’s mining ministry said Santo Domingo will need more than 8,000 workers at the peak of construction. The plan also covers two near-term projects at Mantoverde, along with mine development, sustaining capital and exploration.

Santo Domingo, a copper-iron-gold project, sits about 35 kilometers northeast of Mantoverde. Capstone is developing the two as a single district and plans to share infrastructure between them.

The company owns 70 percent of Mantoverde, with Japan’s Mitsubishi Materials (OTCPL:MIMTF) holding the remaining 30 percent. The two Mantoverde projects carry a combined budget of about US$220 million.

Capstone expects the US$176 million Mantoverde optimized expansion to add about 20,000 metric tons of copper a year. As of September, the company planned to finish construction in Q3 and start ramping up in Q4.

The US$45 million Mantoverde pyrite augmentation project, slated for completion in early 2028, would add about 3,500 metric tons a year and open a path to cobalt production at the site.

The plan follows Capstone's September 21 agreement to sell its Cozamin copper-silver-zinc-lead mine in Mexico to Luca Mining (TSXV:LUCAOTCQX:LUCMF) for up to US$385 million. The package includes US$275 million in upfront cash, plus Luca shares, deferred payments and contingent payments tied to copper prices.

The company said the proceeds will strengthen its balance sheet and support its growth pipeline. It expects the sale to close in the fourth quarter, subject to regulatory approvals, including from Mexico's antitrust commission.

“It is an ideal time to streamline our portfolio through this divestiture as we advance towards transformational copper growth in Chile and the United States,” President and CEO Cashel Meagher said at the time.

In August, Capstone also completed its purchase of the San Pietro copper concessions, which lie between Mantoverde, Santo Domingo and its Sierra Norte property, for US$25 million in shares.

The deal added about 16,000 hectares and an inferred resource at the Rincones and Colla deposits of 492 million metric tons grading 0.23 percent copper and 0.05 grams per metric ton gold.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.