Cobre Limited has executed ore purchase agreements with two regional copper oxide miners in Chile’s Antofagasta region to supply its Sierra Atacama processing facility, adding approximately 300 tonnes of copper cathode per month starting in the fourth quarter of 2026.

Under the arrangement, deliveries ramp up from Q4 2026 at 50,000 to 75,000 tonnes per month of 1.0% to 1.5% CuT oxide ore. This material bypasses underground mining costs, utilizing solvent extraction-electrowinning capacity operating below nameplate. Spreading fixed plant costs across higher tonnage lowers unit operating costs while keeping underlying production guidance unchanged.

Cobre increased its interest to majority ownership in August 2026. Previous plans targeted underground output ramping toward 700 tonnes of copper cathode per month by Q1 2027. The new third-party agreements add supplementary cathode production starting in Q4 2026 alongside those ongoing targets.

Negotiations with additional regional ore suppliers are underway, with further agreements expected as Cobre consolidates the plant's position as a processing hub for high-grade oxide ore. Regional activity continues to highlight the district's potential, as demonstrated when Marimaca Copper Corp. reported standout drill results at its Pampa Medina project on 8 September 2026, intersecting 216m of 0.96% Cu and 7.2g/t Ag from 466m downhole.

“The current underground operation will progressively transition through 2027 into a substantially larger open-pit operation, and third-party ore fills that gap - keeping the SX-EW plant at materially higher utilisation throughout the transition rather than allowing throughput to drop between the two production sources. Sierra Atacama is being positioned as the regional processing hub, and the market is now recognising that.”

— Adam Wooldridge, Chief Executive Officer

“Financially, these arrangements deliver on three fronts. They generate incremental cash flow through 2027 that would not otherwise be available during the transition period. They spread the plant's fixed cost base across a materially higher tonnage throughput, which improves unit economics for our own ore. And they establish the commercial framework - pricing, logistics, quality assurance - that scales seamlessly as our own production grows.”

— Kaveen Bachoo, Chief Financial Officer

The company scheduled the ramp-up of purchased high-grade oxide ore deliveries and additional copper cathode production from Q4 2026, and expects to provide FY2027 guidance incorporating underground operations, third-party ore contributions, and open-pit mining commencement in Q1 2027.

Read the full announcement: Third-Party Ore to Boost Copper Output and Cash Flow