Copper investment continued to favour the Americas in August, with mining companies directing capital toward large mineral districts, existing operations and brownfield expansions. Lundin Mining reported second-quarter production of approximately 77,000 tonnes of copper and 33,000 ounces of gold, generating nearly $1.2 billion in revenue and $658 million in adjusted EBITDA. The company is also directing future growth capital toward projects that can use existing infrastructure or develop large-scale mineral systems in stages.
Vicuña development advances along Argentina-Chile border
Lundin’s Vicuña joint venture with BHP combines the Josemaria and Filo del Sol deposits along the Argentina-Chile border. The development plan is structured in phases. The initial stage would include a sulphide concentrator and Josemaria open pit, establishing production before subsequent phases add Filo del Sol oxides and SX/EW production.
Later development would extend into the much larger sulphide system. Argentina has approved Vicuña under the RIGI PEELP investment regime, providing a more stable fiscal framework for a project expected to require billions of dollars in capital as development progresses.
Chapada expansion targets additional copper and gold
In Brazil, Lundin is applying a similar brownfield approach at Chapada, where it has sanctioned an additional ball mill associated with development of the nearby Saúva deposit. Engineering work indicates that Saúva could contribute approximately 15,000 tonnes of copper and 45,000 ounces of gold annually during its initial development phase.
The additional grinding capacity is expected to increase copper and gold recoveries by about 5%, with commissioning targeted for late 2027. The projects highlight the importance of established mining districts for new copper supply. Existing mines can provide access to processing infrastructure and operating facilities, allowing companies to expand production through additional deposits, plant upgrades or pit extensions.
Brownfield projects shorten the path to new supply
The focus on existing districts reflects the time required to convert mineral resources into operating production. New standalone mines can take a decade or more, while brownfield developments can potentially deliver incremental production within a few years. This makes projects capable of adding 10,000–50,000 tonnes of copper per year from established mining districts increasingly relevant to capital allocation, compared with exploration projects whose larger theoretical production remains dependent on an uncertain development timeline.
Large-scale projects such as Vicuña also offer production potential capable of materially changing the output profile of major mining companies, supporting access to global balance sheets and infrastructure financing. Significant risks remain across the region. Argentina continues to face political and macroeconomic uncertainty, while Andean mining developments must address water, power, infrastructure and community challenges. At the same time, the Americas contain large mineral systems, operating mines and established processing infrastructure, supporting continued investment in projects capable of adding copper through existing mining districts.
