Japanese metal producer Nittetsu Mining has agreed to form a joint venture with Vancouver-based exploration firm Camino Minerals to develop a copper mining project in Chile.
This comes as part of Nittetsu's mid-term strategy to achieve 50,000 t/yr of copper production by 2033. The 50:50 joint venture betweenNittetsu and Camino plans to develop the Puquios Copper Project in Chile's central Coquimbo region, the Japanese firm announced on 8 October.
The investment amount and production volume of crude ore and copper concentrates were undisclosed. But copper equivalent output could be around 15,000 t/yr, according to the Nittetsu representative who spoke to Argus. The Japanese firm is still in discussions with Camino over potential offtake amount, the representative added.
The project will start commercial operations after completing the environmental approval process, which could take another few years, Nittetsu said. "This opportunity aligns with Nittetsu's commitment to expanding our footprint in the copper sector by utilising our extensive operational experience and technical expertise", said Nittetsu's general manager Shinichiro Mita.
The Japanese firm has separately been developing the Arqueros copper project in Chile since April 2023, with funding by state-backed Japan Bank for International Cooperation (Jbic). The company aims to start producing 15,000 t/yr sometime during April 2026 and March 2027, which is similar to the output volume expected at Puquios project.
Japan's government strongly encourages domestic firms to secure copper supply sources. The country's strategic energy plan was revised in 2021, with an aim to lift base metal self-sufficiency to 80pc by 2030, up by around 30 percentage points from the 2018 level. But the strategy appears to not be on track, the country's ministry of trade and industry Meti said in September, although it did not disclose the current rate.
Nittetsu expects copper price is likely to remain bullish in the mid-to long term, given higher copper demand driven by decarbonisation and electrification efforts. But the price could face higher volatility in the short term, the company said in July.
