Antofagasta’s Centinela Second Concentrator in Chile is progressing with construction backed by approximately US$2.5 billion of project debt, including direct participation from Germany’s KfW IPEX-Bank.
The expansion has an estimated capital cost of approximately US$4.4 billion and is designed to increase annual production by around 144,000 tonnes of copper, 130,000 ounces of gold and 3,500 tonnes of molybdenum. KfW IPEX-Bank has committed US$150 million to the financing package. Construction is scheduled for completion in 2027, with mechanical installation, power infrastructure and seawater systems progressing during 2026.
Debt covers more than half of project capital
The US$2.5 billion debt package represents approximately 57% of Centinela’s estimated project cost. The remaining approximately US$1.9 billion is expected to be provided through Antofagasta’s equity contribution and other sources of funding. The financing structure provides project debt alongside equity and other funding rather than relying entirely on debt for the expansion.
The project’s production mix also includes gold and molybdenum alongside copper. The planned 130,000 ounces of gold and 3,500 tonnes of molybdenum per year will contribute to the project’s overall production economics and debt-service capacity.
Renewable power and seawater infrastructure
Centinela is being developed with renewable electricity and raw seawater, making power and water systems integral components of the expansion. The use of seawater addresses the freshwater constraints affecting mining operations in northern Chile. Raw seawater can reduce the need for desalination, while requiring corrosion-resistant equipment and controls capable of maintaining processing performance.
The seawater infrastructure, power systems and second concentrator therefore need to be commissioned as an integrated operating system. The project remains exposed to the requirement to complete these infrastructure packages alongside the concentrator itself.
German lender provides European financing link
KfW IPEX-Bank’s US$150 million participation provides the Centinela expansion with a direct European institutional financing connection and can support procurement involving European engineering and equipment suppliers. Unlike projects that remain at the strategic designation or study stage while seeking construction capital, Centinela has committed project debt, an established operator and a defined construction schedule. With completion targeted for 2027, the principal development requirement is execution of the US$4.4 billion expansion and the subsequent achievement of stable production across the concentrator, power and seawater infrastructure.
