BHP Billiton approved $2.6 billion in two projects that will increase production at the Escondida mine in Chile over the next ten years. Organic Growth Project 1 is to replace the Los Colorados concentrator with a new 152,000 tonne per day plant. This will give BHP Billiton access to higher grade ore which is found underneath existing facilities.

Construction begins this month and is expected to be completed in 2015. The entire project will cost $3.8 billion of which BHP Billiton's share will be $2.2 billion. Rio Tinto has approved a $1.4 billion investment in Escondida - the company holds a 30% interest in the mine.

At the same time, BHP Billiton announced an increase of 17% in Mineral Resources and a 25% increase in Ore Reserves at Escondida following brownfield exploration and drilling programs. Copper production at Escondida is likely to reach 1.3 million tonnes per year from 2015.

Escondida, which supplies about 7 per cent of the world's copper, is 57.5 per cent-owned by BHP, while Rio has a 30 per cent share and the rest is owned by Jeco, a Japanese consortium.

Chile Copper Mining Market Overview and Forecast to 2020: Trends, Fiscal Regime, Major Projects, and Competitive Landscape