How Freehill’s Third Chile Site Could Transform Its Aggregate and Mining Future

Strategic Expansion in Chile

Freehill Mining Limited (ASX – FHS) has announced a significant step in its Chilean operations by securing a third site with existing production infrastructure in the La Serena/Coquimbo region. This move builds on the company’s earlier acquisition of a second site in April 2025, further consolidating its position as the dominant supplier of aggregate materials such as sand and gravel to key infrastructure projects in the area.

The new site, secured under a four-year lease with annual renewal options, is strategically located near major customer delivery points and ongoing construction projects. This proximity not only reduces logistical challenges but also positions Freehill to capitalize on the anticipated surge in demand from both existing clients and new infrastructure developments across Region III and Region IV of Chile.

Meeting Infrastructure Demand

Chile’s infrastructure sector is currently experiencing robust activity, with multiple long-term road and construction projects underway. Freehill’s expanded production capacity from the two new sites enables the company to raise its baseline supply levels significantly, smoothing out the variability that typically accompanies project-dependent consumption cycles. The second site is expected to be fully operational imminently, with processing plants relocated from the Yerbas Buenas mine already supplying stockpiles to customers.

Freehill’s CEO Paul Davies highlighted the company’s competitive advantage in sourcing quality materials close to major projects, noting that the new sites will strengthen their tendering pipeline and facilitate rapid establishment of new supply agreements. This expansion is a clear signal of Freehill’s intent to dominate the regional aggregate market and support Chile’s growing infrastructure needs.

Funding Future Mining Endeavours

Importantly, the cash flows generated from the aggregate materials business are earmarked to fund the recommencement of magnetite mining operations at Freehill’s 100%-owned Yerbas Buenas mine. Bulk sampling is currently underway, and the company is focusing on mine planning and securing necessary approvals. This diversification into higher-value commodities aligns with Freehill’s long-term strategy to develop multiple revenue streams.

Additionally, Freehill is advancing exploration activities at the adjacent El Dorado Copper-Gold project, where recent sampling has revealed high-grade mineralisation along a 1.3-kilometre strike. Assay results are expected within the next two weeks, potentially unlocking further value and development opportunities in the region.

Outlook and Market Position

Chairman Ben Jarvis emphasised that scaling the aggregate business not only provides steady cash flow but also grants the flexibility to pursue medium-scale mining projects with significant upside potential. As Freehill continues to build its presence in Chile, the company is well-positioned to benefit from the country’s infrastructure boom and evolving commodity markets.

While the announcement does not detail the financial terms of the new lease or precise timelines for magnetite mining recommencement, the strategic expansion and ongoing exploration efforts suggest a company gearing up for growth on multiple fronts.