Iron ore mining company BHP is set to advance with a $2bn (A$3.16bn) investment plan to optimise the concentrator at Escondida, the world's largest copper mine, as part of a broader $10.8bn (10.18trn pesos) investment plan in Chile, reported Reuters.

BHP aims to submit the plan for environmental permitting for the investment shortly.

The investment announcement coincided with Chilean Finance Minister Mario Marcel's visit to the mine.

Marcel highlighted that most foreign investment in Chile comes from companies such as BHP that are expanding and reinvesting in their existing operations.

The initiative marks the first in a decade-long investment strategy announced by BHP in November 2024.

Escondida president Alejandro Tapia said in a statement: “It is a plan that doesn't just allow us to maintain production at our operation, but means making a $10bn investment that will benefit the country and the region of Antofagasta.”

In the first half of the 2025 financial year, Escondida saw a 22% increase in copper output, contributing to a total production rise of 10% to 987,000 tonnes (t).

With the global shift towards lower-emission energy, copper production has become increasingly important.

BHP anticipates a global copper deficit of ten million tonnes within the next decade and is planning to invest at least $11bn in Escondida and other projects in Chile to meet the expected demand.

Last month, BHP and Lundin Mining completed the joint acquisition of Filo, a Canadian exploration and development company, for C$4bn ($2.78bn).

The acquisition provides both companies with a 50% interest in Filo and its FDS copper project in the Atacama region of Chile.