Freehill Hits 500m³ Daily Aggregate Deliveries, Boosting Cement Supply

Freehill Mining’s Aggregate Business Gains Momentum

Freehill Mining Limited (ASX – FHS) has reported a significant ramp-up in its aggregate processing and sales operations in Chile, marking a pivotal moment for the company’s industrial minerals division. Daily deliveries of industrial sand and gravel to a key cement industry customer in the La Serena/Coquimbo region have reached between 300 and 500 cubic meters, the highest volumes recorded since the business was established.

This surge in supply not only underscores Freehill’s growing footprint in the local cement sector but also signals a strategic broadening of its product mix beyond traditional construction base materials. The company has stockpiled approximately a month’s worth of material to ensure uninterrupted deliveries, demonstrating a commitment to reliability amid scaling operations.

Operational Enhancements Support Growth

To sustain and further accelerate this momentum, Freehill is investing in enhancements at its Islon plant. These include increasing water recycling capacity; a critical factor for processing industrial sand; and installing additional conveyors to improve operational efficiency and uptime. Such upgrades are designed to meet rising customer demand and facilitate a broader sales pipeline beyond the current customer base.

Meanwhile, the Yerbas Buenas site continues to contribute steady sales of sand and rock to local construction projects, complementing the company’s aggregate portfolio and reinforcing its regional presence.

Management’s Perspective and Future Outlook

Chief Executive Officer Paul Davies expressed optimism about the stable delivery rates and the foundation laid for scaling up processing and sales. He highlighted the growth dynamics in the La Serena/Coquimbo region as a key opportunity for Freehill to capitalize on expanding demand.

Non-Executive Chairman Ben Jarvis acknowledged the challenges of recent quarters but emphasized that the aggregates business is now at a critical turning point. While Freehill continues to explore copper and gold projects, the immediate focus remains on demonstrating consistent sales growth and achieving acceptable margins in its aggregates operations.

Overall, Freehill Mining’s latest update reflects a company transitioning from development to growth, leveraging operational improvements and market opportunities to strengthen its position in Chile’s industrial minerals sector.