Cobre has outlined a three-stage plan to lift Sierra Atacama’s copper cathode capacity from its existing configuration to 18,000 tonnes per annum, then 25,000 tonnes, with a larger 50,000-tonne case under consideration. The targets depend on refurbishment, permitting, further drilling and resource modelling.
- Stage 1 targets approximately 18,000tpa through SX-EW refurbishment and recommissioning
- Stage 2 could lift capacity to approximately 25,000tpa
- Longer-term development case targets up to approximately 50,000tpa
- DIA submission for the 25,000tpa operation targeted by end-2026
- Stage 1 tender award expected by the end of the quarter
Sierra Atacama expansion plan reaches 25,000 tonnes
Cobre Limited (ASX:CBE) has put numbers around its ambition for Sierra Atacama, outlining a staged pathway that could take copper cathode production to approximately 25,000 tonnes per annum and, subject to further work, eventually as much as 50,000 tonnes. The immediate target is more modest but more tangible: restore and optimise existing plant capacity to approximately 18,000 tonnes per annum.
The plan is built around infrastructure already at the Chilean operation rather than a wholly new processing development. Stage 1 involves refurbishing the operating solvent extraction circuit, recommissioning the currently unused second electrowinning bay and expanding supporting systems including crushing, ROM and leach-pad capacity, pumping and solution management.
That near-term programme now has a procurement timetable. Cobre says tendering for the SX refurbishment and electrowinning recommissioning is underway, with the contract award expected by the end of the quarter. The announcement does not disclose the expected capital cost, funding requirement or an economic assessment for any of the three stages.
Second processing stage requires power, water and approvals
Stage 2 would add a larger step by recommissioning and upgrading the second solvent extraction line and constructing another electrowinning bay. Cobre says that configuration could support approximately 25,000 tonnes per annum, alongside expanded leach and ROM pads, additional crushing capacity and further solution-management infrastructure.
The proposed operation would also require a connection to the 110 kV grid, increased water supply and storage, additional open-pit mining areas and expanded accommodation and site infrastructure. Engineering, metallurgical, architectural and environmental studies are underway for a new Declaración de Impacto Ambiental, or DIA, with submission targeted for the end of 2026.
The expansion announcement arrives shortly after Cobre secured Sierra Atacama control by lifting its project interest to 62.86% through an approximately US$12 million option exercise. The larger ownership position gives the plan a clearer corporate pathway, but it does not remove the technical, permitting or execution work still required.
40,000-metre drilling campaign holds the 50,000-tonne case
The 50,000-tonne figure remains an evaluation target, not a declared production outcome. Cobre intends to use its ongoing 40,000-metre drilling programme to update the Sierra Atacama Mineral Resource and support a larger open-pit mine design and schedule before assessing the bigger development case.
That work would require additional technical studies, economic evaluation and environmental approvals. Cobre’s recent capital raising provides disclosed funding for Sierra Atacama ownership, debt repayment, plant upgrades and exploration, but the company has not allocated a stated amount to this expansion pathway. The next hard markers are therefore the Stage 1 contract award, the DIA submission and the drilling and resource-modelling results that could determine whether the upper-end production case has a credible foundation.
Bottom Line?
The plan turns existing plant capacity into a staged growth proposition, but its investment case will sharpen only when Cobre discloses costs, approvals and resource results.
Questions in the middle?
- What capital cost and funding profile will Cobre attach to the 18,000tpa and 25,000tpa stages?
- Can the DIA, grid connection and water expansion progress on the targeted timetable?
- Will the 40,000-metre drilling programme support the mine scale needed for a 50,000tpa operation?