Freeport-McMoRan has applied for environmental approval for a $7.5bn project aimed at significantly increasing copper production at its El Abra mine in Chile.

The US-based company announced that the project involves constructing new concentrator and desalination plants as well as additional tailings storage, reported Bloomberg.

If approved, the expanded operations are expected to commence in 2033, potentially raising annual copper output by more than 300,000t.

Freeport holds a 51% stake in the El Abra operation, while Codelco owns the remaining 49%.

The proposed expansion comes at a time when global demand for copper is rising due to the widespread adoption of electric vehicles and an increase in AI data centres.

However, miners are faced with challenges such as declining ore quality and more complex and costly mining conditions.

Freeport’s decision-making process is ongoing, with a final investment decision yet to be made.

The development is part of a broader industry movement in Chile, encouraged by President Jose Antonio Kast's pledges to streamline permitting processes, which have historically slowed down mining projects.

In this context, Freeport executives met with Chile's new Economy and Mining Minister, Daniel Mas, in Santiago.

Mas has recently urged business leaders and investors to actively tackle sluggish economic growth.

He emphasised that accelerating environmental approvals could unlock significant investments and generate more than 20,000 jobs, as stated in his initial public address earlier this week.

Last month, Freeport signed a memorandum of understanding with the Indonesian Government to extend operating rights for PT Freeport Indonesia in the Grasberg minerals district.

In September 2025, the company declared force majeure at its Grasberg block cave mine in Indonesia following a substantial mud rush incident that affected operations.