Candelaria – Low Cost Copper-Gold Producer in Chile

Phelps Dodge’s Candelaria copper-gold mine is located 20 km (12miles) south of Copiapó in northern Chile’s Atacama province (Region III) (Fig. 1). The Candelaria Mine is about 800 km (500miles) north of Santiago and 75 km (47 miles) east of the Pacific Ocean. Its elevation is 600 m (1,970 ft) above sea level. The Copiapó River Valley is 6 km (4 miles) northeast of the mine site. It is the only major source of water in this arid region. The average rainfall is 14mm/a (0.5 in./year). During 1995, the mine produced 521.4 kt (574,800 st) of copper concentrate containing 150 kt (165,000 st) of salable copper and 3 t (98,800 oz) of gold. The 1995 unit cash cost was less than 50 cents/lb of copper. This makes Candelaria one the world’s lowest cost copper producers.