Mantos Blancos, Chile / Copper
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The copper concentrate produced at Mantos Blancos is very high quality, with low levels of impurities, and should remain in high demand by consumers.
Producing
Copper
Capstone Copper
Chile
Royalty rate and type
1.525% NSR
Balance sheet classification
Royalty intangible
Key facts
$6.1m
Mantos Blancos generated $6.1m of revenue in 2023, with average copper prices of $8,492/lb.
10Mtpa
Mantos Blancos Phase II project has the potential to increase the throughput of the sulphide concentrator plant from 7.3 Mtpa to 10 Mtpa
Copper Mark
In 2023 Mantos Blancos was awarded the Copper Mark. The Copper Mark Assurance Framework promotes the responsible production of copper
The Group acquired a 1.525% net smelter return royalty over the Mantos Blancos copper mine in Chile for $50.3m in 2019. The Mantos Blancos mine is an open-pit operation located in Chile, producing copper with silver by-products. The NSR entitlement applies exclusively to copper production at the mine.
The operation is owned by Capstone Copper, following the merger between Mantos Copper and Capstone Mining Corp in 2022.
Mantos Blancos is a long life copper mine with upside potential in a recognised mining jurisdiction. Capstone Copper is a highly regarded operator with a wealth of in-country experience. There is widely expected to be a supply deficit in copper from later this decade and it is management’s belief that this will create upwards pressure on copper prices.
The Mantos Blancos mine is located in the north of Chile, in the Antofagasta Province, in the Antofagasta Region. The mine is 45km north-east of the city of Antofagasta.
Due to a depletion of oxide ore reserves and in order to maintain copper production Mantos Blancos is expanding the sulphide ore treatment capacity from 4.2Mt per year to 7.3Mt per year. The two metallurgical processes in operation at Mantos Blancos are:
- Flotation plant (concentrator) for sulphide ore with insoluble copper grade (‘ICu’) greater than 0.22%
- Dump leach process for oxides with soluble copper grade (‘SCu’) greater than 0.10%
The open-pit operation includes one large open pit (Santa Barbara) that provides most of the sulphide material for the concentrator and oxide material for dump leaching.
Other sources of material are:
- Flotation: Sulphide stockpile (Cancha 90)
- Dump leach: Oxide stockpile (Mercedes stockpile)
Mantos Blancos generated $6.1m of revenue for the Group in 2023, up 2% on 2022 ($6.0m). Total payable copper volumes increased to 49.3Kt (2022: 48.8Kt) and the underlying copper price in the year averaged $8,492/tonne (2022: $8,724/tonne).
In July 2024, a successful two-week planned shutdown was completed which included the installation of a new holding tank and additional pumps in the tailings area in order to address deficiencies identified as preventing the sustained achievement of the 20 ktpd throughput capacity from the sulphide operations.
Following a ramp up in August, ore throughput achieved 18,062 tpd through to the end of Q3, with the plant meeting or exceeding the nameplate capacity of 20,000 tpd on 23 operating days. The overall variability of the milling process has been significantly reduced and higher throughput is expected in Q4 and beyond.
Capstone continues to highlight the potential for a Phase II expansion at Mantos Blancos with a Feasibility Study, looking at increasing mill throughput to 27,000 tpd, expected by the end of 2025.
Capstone is also evaluating the opportunity to reprocess tailings via. existing and underutilised SX-EW capacity that could increase copper production by ~25 ktpa for 15 years with no additional mining or crushing costs.