Chile-based Antofagasta will spend at least $200-million less on capital expenditure (capex) this year, owing to the temporary suspension of the Los Pelambres expansion project, the deferral of sustaining and other growth capex, as well as lower mine development and a weaker Chilean peso.
Antofagasta suspended work on the project earlier this month in response to the health and safety emergency caused by the new coronavirus pandemic. The suspension is expected to be for up to 120 days.
Capex will now be less than $1.3-billion, compared with the original guidance for the year of $1.5-billion, CEO Iván Arriagada said in the London-listed miner’s first-quarter production announcement.