Rio and BHP spend 3bn dollars bringing water to Chile desert

26th Jul 2013 07:47

Mining giants Rio Tinto and BHP Billiton have approved a joint 3bn dollar investment to construct a sea water desalination plant in the Chilean desert to support their joint Escondida project.BHP, which owns 57.5% of the Escondida project, has agreed to invest $1.97bn while on Friday Rio Tinto approved its $1.03bn share to represent its 30% stake.The desalination project will ensure continued water supply as water use increases upon completion of the 152,000 tonne per day OGP1 copper concentrator approved in February 2012, while minimising Escondida's reliance on the region's natural aquifers.Construction is scheduled to begin in July 2013 with commissioning expected by 2017. Rio Tinto said its investment will be funded through its share of Escondida's cash flows. BHP Billiton Copper President, Peter Beaven, said: "Securing a sustainable water supply in the Atacama Desert is a major priority for all Chilean copper producers, so the approval of the Escondida Water Supply project is a significant milestone for our business. "The new desalination facility will minimise our reliance on the region's aquifers, which will help us to meet our environmental commitments and enable us to achieve our long-term business strategy."Shares in both companies were unmoved by the news by 08:03 on Friday. OH