Antofagasta warns it could close copper mine in Chile

16th Mar 2015 09:03

Mining giant Antofagasta said it might have to close its Los Pelambres mine in Chile.Earlier in March, the mine, which produced around 405,000 tonnes of copper last year, was dealt a blow by a court ruling in favour of protesters from the local communities, who claimed the mine was affecting water availability and demanded the company build a desalination plant."We cannot guarantee that it will not close, in light of what's been happening," group president Diego Hernandez told Chilean newspaper La Tercera.Analysts at Investec said that while the miner had agreed to build a desalination plant if the mine was expanded, the costs to develop such a plant could "undermine the long term economics of the asset".However, the broker remained confident that the miner would not be forced into closing its mine."Los Pelambres is a Tier 1 copper mine and we would be surprised if the latest developments lead to the closure of the asset," Investec analysts said in a note.Antofagasta shares were down 0.43% to 695.50p at 09:21 on Monday.