Antofagasta Halts Los Pelambres Mine Expansion Project

SEATTLE (Scrap Monster):  Chilean miner Antofagasta announced that it has suspended the Los Pelambres expansion project for a period of at least four months. The $1.3 billion expansion project will remain on care and maintenance. The decision will be periodically reviewed as the crisis evolves.

It must be noted that the company had already put parts of the project on hold in March this year. It had also reduced the number of staff at the mine.

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Antofagasta decided to temporarily suspend the contracts with most of the companies, as the health emergency caused by the virus has made it impossible to continue normal operations. The decision will not necessarily lead to termination of contracts. However, many companies may not be able to do the work for which they are contracted, said Francisco Walther, Vice President of Projects at Antofagasta Minerals.

Further, Walther hoped that the company will be able to resume work, hopefully well before the end of the 120-days timeframe.

The company noted that it would do the needful to ensure that the cost of the crisis on contractor workers is reduced as much as possible. The terms that will apply to contractor companies will be agreed to in the coming days, after reviewing each case individually. Antofagasta aims to ensure minimum monthly income of $585 to each worker and avoid termination of employment, wherever possible.