LONDON (ShareCast) - (Sharecast News) - Antofagasta updated the market on the damaged construction platform at Los Pelambres on Tuesday, confirming that the desalination plant's completion schedule, and its 2023 copper production plans, had been impacted.
The company had said on 12 September that severe sea swells had overturned a construction platform working on the marine works of the Los Pelambres desalination plant project.

At the time, Chile's environmental regulator, the SMA, halted all marine works pending the recovery of the lost equipment and materials.

The restriction expired on 3 October, and was not extended.

"Sea conditions continue to prevent the complete recovery of all the lost equipment and this has prevented the resumption of marine construction work since this restriction was enforced in September," Antofagasta said in its statement.

"As a result, the suspension of the works has impacted the completion schedule for the desalination plant project.

"A revised schedule incorporating this delay together with the impact of continued sea swells on the remaining marine works is being finalised."

The company said it did not expect a material increase in the total capital cost of the project as a result of the delayed resumption of works.

"Despite the revision of the completion date of the desalination plant, water availability this year at Los Pelambres will allow group copper production in 2022 to reach the lower end of the 640,000 to 660,000 tonne guidance range.

"The completion of the desalination plant is now estimated to impact previously planned production in 2023 by approximately 30,000 tonnes.

"This will be reflected in the group's total copper production guidance for the year which will be announced in the company's third quarter production report on 19 October."

Antofagasta said the overturned platform had caused no significant environmental impact to date.

At 1447 BST, shares in Antofagasta were up 1.28% at 1,145.5p.

Reporting by Josh White at Sharecast.com.

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