Antofagasta's Chile copper processor to cost less than expected, says CEO

FILE PHOTO: Group CEO of Antofagasta Minerals, Ivan Arriagada speaks during the CRU's World Copper Conference in Santiago, Chile April 9, 2019. REUTERS/Rodrigo Garrido/File Photo

LONDON (Reuters) - The construction of a second concentrator at Antofagasta's ANTO.L Centinela mine in Chile is likely to cost about 25% less than an original estimate of $2.7 billion (2.1 billion pounds), the mining company's chief executive said on Wednesday.

“We are looking at ways to reduce the upfront capital required by getting someone else to develop the water system ... so that will reduce the capital cost on the front end from the $2.7 billion probably to about $2 billion,” Ivan Arriagada told Reuters.

Antofagasta, which has saved $78 million this year, expects to exceed its annual savings target of $100 million this year thanks to renegotiation of contracts and reorganisation of some work, Arriagada said.

Reporting by Zandi Shabalala; Editing by David Goodman