Chile’s Escondida, the world’s largest copper mine, will make a decision on a US$1bn investment plan this year to carry out three projects to optimize operations, BHP Billiton’s (NYSE: BHP) base metals president Diego Hernández said.

While attending CRU’s 9th World Copper Conference in Santiago, Hernández told journalists the three projects include a change in the position of the primary crusher at the open pit (US$250mn), the construction of new pads for leaching of sulfide ore (US$450mn) and an increase in processing capacity at the Laguna Seca concentrator by 15,000t/d from the current 240,000t/d.

Once a decision is made, development should start this year. All of the projects would be completed 18-24 months after starting construction, he said.

Hernández also said Escondida’s phase V expansion project is currently at its prefeasibility stage and should move to the feasibility stage in 2011. The project’s capex would be about US$2.5bn for the construction of a new concentrator to replace the current Los Colorados facility. The new plant will have a processing capacity slightly higher than Laguna Seca.

Once in operation, the new facility will allow the company to access higher grade ore, passing from 1.1% to 1.3% for a period of 2-3 years, Hernández added.

The president also said Escondida’s production will average 1.05M-1.1Mt/y in 2010-12.

Production last year fell to 1.1Mt from 1.22Mt in 2008 due to lower grades.

Finally, Hernández announced a possible phase VI expansion at Escondida for the construction of a third concentrator, but a decision on that project is not expected to be made before 2015.

BHP controls 57.5% of Escondida, located in northern region II. Rio Tinto (LSE: RIO) owns 30%, Japan’s JECO corporation 10% and the World Bank’s International Finance Corporation owns 2.5%.

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