Spence, Operated by BHP, Records Significant Growth in Copper Production in 2023

In 2023, BHP's Spence facility achieved a crucial 4% rise in copper production, thanks to improved concentrator performance at Pampa Norte. The recent operational review disclosed a substantial 7% surge in copper output.

Spence, specifically, reached a historic milestone with a record semester production of 127 kt, marking a 4% increase from previous figures. The expansion at Pampa Norte was chiefly fueled by advancements in concentrator efficiency. While the record concentrate production was celebrated, it was partially counterbalanced by a decrease in cathode production.

The ongoing modifications to the concentrator plant, initiated in August 2022, are on track to conclude within this year. BHP has greenlit a significant $570 million increase in maintenance capital to advance the remediation efforts addressing previously identified anomalies in the Spence Tailings Storage Facility (TSF). According to the company, these plans have been meticulously crafted in collaboration with the lead engineer, the independent tailings review board, and expert consultants. This marks the initial phase of TSF remediation. Spence's production guidance for the fiscal year 2024 remains steady, ranging between 210 and 250 kt, contingent on the successful remediation of TSF anomalies.

In addition, BHP reported that "Cerro Colorado entered temporary care and maintenance in December 2023, following a production of 11 kt during that period."*

Shifting focus to Escondida, the boosted production was primarily attributed to a higher feed grade to the concentrator at 0.81%, surpassing the 0.79% recorded in the first half of 2023, coupled with improved concentrator efficiency. The concentrator feed grade is expected to fluctuate between 0.85% and 0.90% for the year 2024. The production forecast for fiscal year 2024 remains unchanged, ranging between 1,080 and 1,180 kt.