Hot Chili advances world-class Costa Fuego copper-gold project with strategic regulatory milestone

Hot Chili secures environmental permit for bulk metallurgical test work at its Costa Fuego Copper-Gold Project in Chile, advancing toward pre-feasibility and major development milestones.

Australian-listed copper developer Hot Chili Limited (ASX: HCH) has achieved a major step forward in the advancement of its flagship Costa Fuego Copper-Gold Project in the Atacama Region of Chile. The company announced it has been granted environmental approval to commence bulk metallurgical test work at the Productora site, marking a pivotal milestone in the project's development pipeline.

This permit allows Hot Chili to extract up to 120,000 tonnes of bulk material for processing through third-party facilities. The testing campaign will validate metallurgical assumptions outlined in the March 2024 Preliminary Economic Assessment (PEA) and provide critical data for the Pre-Feasibility Study (PFS) scheduled for 2025.

“This approval is an important de-risking event and demonstrates the collaborative support of Chilean authorities as we advance one of the few low-altitude, low-arsenic, large-scale copper developments in the world,” said Christian Easterday, Managing Director of Hot Chili.

Strengthening Costa Fuego’s strategic profile

Costa Fuego consolidates the Cortadera, Productora, and San Antonio deposits into a single coastal project with access to existing infrastructure, including highways, ports, and grid power. The project hosts a total resource of 3.5 Mt copper equivalent and is positioned to support future clean energy transition demand, especially as global copper supply faces structural constraints.

The bulk test work will be instrumental in refining recovery rates, optimizing processing flowsheets, and strengthening discussions with potential offtake and strategic partners, including Glencore, which currently holds a 9.99% stake in Hot Chili.

Next steps and outlook

Hot Chili expects to initiate extraction activities in Q3 2025, subject to final operational approvals. The company is also progressing community engagement and regional development initiatives to align with Chile’s sustainable mining policies.

With copper prices trending upwards amid global electrification efforts, Costa Fuego is gaining increased attention as a key Tier-1 copper development poised for construction readiness in the near term.