Capstone Allocates $2.3 Billion to Santo Domingo Project in Chilean Expansion Plan
Key Facts
Capstone Copper announced an investment plan to expand copper production in Chile, allocating $2.3 billion to the Santo Domingo project and $220 million to two near-term projects at Mantoverde, according to details reported by Reuters via Mining Weekly. The company aims to double its copper production in the country by 2031, according to a Reuters report published on October 26, 2026. That places Santo Domingo at the center of the expansion plan, with the largest share of the announced spending allocated to the project. The plan comes as Capstone's consolidated copper production posted an annual decline in the third quarter of 2026. Separately, the Canadian government announced C$193.3 million in funding for aluminum projects, as a labor strike began at a copper mine operated by Teck in Canada.
Capstone's results for the third quarter of 2026 show consolidated production of 45,218 tonnes of copper, compared with 55,280 tonnes in the same period of 2025, down 18% year over year. The company said full-year production is expected to finish at the low end of its guidance range of 200 to 230 thousand tonnes. By contrast, third-quarter revenue rose 19% year over year, while adjusted EBITDA was $358 million, according to the results statement. These figures show mixed performance during the period, with production down and revenue and adjusted earnings higher. Chile's expansion plan offers a long-term path to increase output, while near-term production indicators remain tied to the company's outlook for the current year.
According to Capstone's project page, Santo Domingo is targeted to produce 106 thousand tonnes of copper annually during the first seven years of the mine plan, with an operating life of more than 19 years. The company says construction on the project could require more than 8,000 workers at peak. The project must complete environmental approvals and sectoral permits before construction can begin. Once they are secured, Capstone expects about a year of construction before expanded production starts. The company places the start of that production between 2030 and 2031, according to its update on third-quarter 2026 results.
At Mantoverde, the plan includes $220 million for two near-term projects, while the Mantoverde Optimized project aims to increase ore-processing capacity from 32,000 to 45,000 tonnes per day. Capstone estimated the expansion would add about 20,000 tonnes of copper annually, along with additional gold production. In October 2026, the company said it had completed the tie-in of the project's sulphide concentrator processing circuit. The project had received company approval in 2025, according to its approval announcement. This work forms part of the shorter-term projects announced alongside the larger Santo Domingo investment.
In Canada, a strike by United Steelworkers Local 7619 began at Teck's Highland Valley Copper operations on October 24. The union represents about 1,200 workers there, according to Reuters. The collective agreement expired on September 30, 2026, while Teck said the strike notice allowed labor action to begin no earlier than 8 a.m. Pacific time on October 24. The company said the mine continues to operate at reduced capacity. Teck said the strike's impact on total production would depend on the duration of the labor action. This is separate from Capstone's investments in Chile, but places labor disruption among current developments in Canada's copper sector.
Meanwhile, Canada's Department of Innovation, Science and Economic Development announced on October 23 a government investment of C$193.3 million through the Strategic Response Fund to strengthen the aluminum sector. The government allocated C$164.8 million to Rio Tinto projects worth $818.5 million, aimed at strengthening the aluminum value chain and reducing emissions in Saguenay–Lac-Saint-Jean. It also allocated C$28.5 million to the C$135 million Alouette Aluminum project. The Alouette project includes modernizing electrolytic operations, improving energy efficiency and reducing greenhouse gas emissions. The government expects the projects collectively to help maintain about 6,000 full-time jobs in Quebec and Canada and support 65 student co-op placements.
Capstone is awaiting a final investment decision on Santo Domingo, which the company expects in the first quarter of 2027. In its third-quarter update, it said it continued work on the remaining workstreams ahead of the decision. Ongoing work includes completing detailed engineering, optimizing infrastructure and securing debt financing, according to the company's statement. After the decision, environmental approvals, sectoral permits and the approximately one-year construction period remain steps to be completed before expanded production. The company places the start of that production between 2030 and 2031, the timeframe underpinning its plan to double Chilean copper production by 2031.