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Mining

Antofagasta clears blockage at Los Pelambres pipeline

Antofagasta said its production guidance for the full year remains unchanged

Antofagasta PLC (LON:ANTO) said a blockage in the pipeline that transports concentrates from the processing plant at Los Pelambres copper mine in Chile to the port of Los Vilos has been cleared.

The company said filtering of concentrates at Los Vilos has resumed and no damage to the pipeline or leaks have been detected.

The pipeline was suspended after a blockage was discovered in April in testing during scheduled preventative maintenance.

During the suspension, the mining operation and processing plant continued to operate normally with concentrates being stockpiled at the plant.

It will take up to three months for the stockpiles at the plant and port to return to normal levels, Antofagasta said.

READ: Antofagasta nearly doubles 2017 dividend as it posts sharp rise in earnings, thanks to higher copper prices

The impact of the blockage on production for the six months to June 30 is expected to be 10,000 tonnes of copper. Sales are expected to be hit by 15,000 tonnes.

For the year, the estimated impact is less than 5,000 tonnes for both sales and production.

Antofagasta said its production guidance for the full year remains unchanged at 705,000 to 740,000 tonnes and the work in bringing the pipeline back to normal operations did not result in material capital expenditure.

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