By Fabian Cambero
ESCONDIDA MINE, April 7 (Reuters) - Chile's Escondida, the world's biggest copper mine, said it is banking on a new $4.2 billion concentrator, its third, and $3.0 billion water desalination plant to counteract falling ore grades and help boost production over the coming years.
Once all three of its concentrators are up and running, Escondida expects to produce around 1.2 million tonnes of copper annually for the next decade. The mine, nestled high in Chile's arid Atacama desert, produced 1.15 million tonnes in 2015.
"Escondida has the potential to operate its three concentrators in the medium term, this will compensate for the natural decline in ore grade and contribute to recovering production in the medium term," the company said on Thursday as it unveiled its third concentrator.
The mine halted its first concentrator in February for renovation work and other adjustments, and the company expects it to be back in operation from July 2017.
Boosting production is also dependent on the completion of Escondida's second water desalination plant, which is slated to be ready in 2017.
BHP Billiton BLT.L BHP.AX controls Escondida with a 57.5 percent stake, while Rio Tinto RIO.L RIO.AX owns 30 percent.