Front and Center: Focus on Customs
In the Atacama Desert of Chile, Antofagasta, a leading mining company, is making strides in sustainable water supply and copper production with its ambitious projects.
The company's construction of a seawater desalination plant for Los Pelambres, one of its most productive mines, is a commendable move towards ensuring a sustainable water supply for its operations.
Antofagasta's largest investment to date, the Centinela mine expansion, aims to increase annual copper production by 144,000 tons starting in 2027. The project has secured $2.5 billion in financing from international lenders, including the Japan Bank for International Cooperation, Export Development Canada, the Export-Import Bank of Korea, KfW Ipex-Bank, and Société Générale.
Despite the focus on copper, Antofagasta remains committed to its core business, with copper likely to remain a significant part of its operations. The company's stock is rated with a "Medium Risk" score of 23.9 by the rating agency Sustainalytics, ranking 11th out of 219 companies in the industry.
The Centinela mine expansion incorporates significant environmental measures, including the use of 100% renewable electricity via power purchase agreements. This commitment to renewable energy makes Antofagasta the leader among mining companies in renewable electricity usage, positioning it favorably in terms of greenhouse gas emissions compared to peers.
The environmental-impact assessment for Centinela’s expansion was approved following engagement with local communities and government entities, highlighting procedural compliance and stakeholder involvement.
However, regional pollution remains a critical issue. In the broader copper mining region of Chile, including Antofagasta city and Calama, reported air pollution levels have caused community health concerns, including rising cases of neurodivergent conditions in children. This has prompted environmental campaigners and Indigenous groups to sue the Chilean government for failing to regulate mining pollution adequately.
In comparison to other mining companies, Antofagasta appears to lead in renewable energy adoption within its industry peer group, surpassing others such as Lundin Mining, which also pursues renewables but at lower levels.
Despite these environmental efforts, the cumulative environmental and health impacts of mining remain problematic. Without addressing these issues, the expansion of renewable energy in Europe, which relies on copper for the construction of power lines, could face challenges.
In summary, Antofagasta's Centinela expansion reflects strong commitments to environmental sustainability through renewable energy and emissions reductions, placing it ahead of many competitors in ESG metrics related to climate impact. However, environmental sustainability in practice is limited by broader regional pollution issues tied to copper mining activities in Chile, highlighting ongoing social and environmental risks beyond individual corporate initiatives.
Antofagasta, while focusing on increasing its copper production, also invests significantly in renewable energy for projects like the Centinela mine expansion, making it a leader among mining companies in this regard. The company has secured financing of $2.5 billion for this project, demonstrating its commitment to its core business, which remains primarily finance, investing, and business related to mining and sustainable energy.
