Chile copper smelter upgrade set to transform Paipote complex

Chile Copper Smelter

The Chile copper smelter upgrade at Enami’s Paipote complex is moving a step closer to reality as regulators signal support for the $1.7bn project. Chile’s environmental impact service SEA has recommended approval, with the Atacama region’s environmental commission scheduled to vote on 29 October. This Chile copper smelter upgrade would modernise a 1950s-era facility, strengthen support for small and mid-scale miners and align Chile’s copper refining base with stricter environmental standards.

The Paipote metallurgical complex currently processes regional ores for Chile’s numerous small and medium miners, but it has struggled with financial losses and environmental compliance. Enami temporarily closed the smelter in 2024 to address these issues. As a result, the Chile copper smelter upgrade proposal combines capacity growth with cleaner technology, positioning the Atacama facility as a more competitive and sustainable processing hub in the world’s largest copper-producing nation.

Chile copper smelter upgrade doubles capacity and adds refinery

Under the plan, the Chile copper smelter upgrade will more than double Paipote’s processing capacity to 850,000 t/yr of copper concentrates. The project will also add an electrolytic refinery capable of producing 240,000 t/yr of copper cathodes, allowing more value to be captured domestically instead of exporting concentrates. Beyond copper, the upgraded plant will process anode sludge to recover palladium, tellurium, selenium, platinum, silver and gold, deepening Chile’s exposure to high-value minor metals markets.

Enami has already received over 15 expressions of interest from banks, funds, miners and traders to finance the project through offtake-based structures. The Chile copper smelter upgrade therefore sits at the intersection of industrial policy and commercial appetite, using future production to unlock capital today. Technically, the project will install a new bottom-blowing reactor and continuous converting technology designed to lift captured emissions from around 95pc to 99pc, an important step in reducing the plant’s environmental footprint in the Atacama region.

The Metalnomist Commentary

If approved, Paipote’s modernisation would mark a significant reinforcement of Chile’s mid-tier copper processing base, particularly for smaller miners that rely on Enami’s infrastructure. The Chile copper smelter upgrade also illustrates how global copper leaders are using brownfield assets to deliver both higher ESG performance and more refined output. For traders and investors, the project underscores a broader trend: future copper supply security will increasingly depend on environmentally upgraded smelters, not just on new mines.