Name of the Project
Huasco Water project.

Location
Huasco Valley, Chile.

Project Owner/s
Hot Chili.

Project Description
The project proposes a multistage seawater and desalinated water supply initiative designed to meet long-term regional water needs. 

The project will be undertaken in three phases. 

Stage 1 involves the development of seawater infrastructure capable of delivering 500 ℓ/s to Hot Chili’s Costa Fuego copper/gold project under a 20-year offtake agreement, formalised through a memorandum of understanding. 

Stage 2, which builds on Stage 1 infrastructure, will expand capacity to 1 300 ℓ/s of desalinated water, while Stage 3 envisions a further expansion to 2 300 ℓ/s. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Stage 1 of the project has an after-tax net present value (NPV), at an 8% discount rate, of $122-million and an internal rate of return (IRR) of 19%, with a payback of 4.5 years. 

Stage 2’s after-tax NPV is estimated at $977-million with the same IRR of 19% and a payback of four years.

Capital Expenditure
The estimated capital cost for Stage 1 seawater infrastructure is $151-million. Stage 2, which includes desalination and expanded infrastructure, is estimated at $1.4-billion.

Planned Start/End Date
Initial seawater supply under Stage 1 is targeted for the end of the decade. Subsequent stages are planned to follow, in line with infrastructure development and demand growth.

Latest Developments
The project has been formally registered with Chile’s Office for Sustainable Project Management (GPS Division), under the Ministry of Economy. The designation places the development on a fast track for permitting and administrative approvals.

The GPS designation is reserved for projects that are expected to contribute meaningfully to Chile’s long-term sustainable growth.

The registration allows for Hot Chili to coordinate and oversee all permitting activity through a central platform, including the upcoming environmental-impact assessment submissions and maritime concession applications for Huasco Water. 

Key Contracts, Suppliers and Consultants
Not disclosed.

Contact Details for Project Information
Hot Chili, tel +61 8 9315 9009 or email admin@hotchili.net.au.