Rio2 Limited has begun commissioning a new tailings filtration facility at its Condestable copper mine in Peru, marking a significant step toward dry-stack tailings and enhanced water efficiency.
Project Overview
The plant was constructed over 18 months at a total capital cost of US$27 million (A$38 million). Once fully operational, it is designed to process 8,400 tonnes per day, capable of handling 100 per cent of Condestable’s current tailings stream. The circuit has also been engineered to accommodate future production expansions.
Commissioning is expected to be completed within 10 weeks, with commercial operations targeted for the third quarter of 2026. Initially, filtered dry tailings will be placed within existing permitted tailings impoundments before transitioning to a proposed dry tailings storage facility (TSF).
Permitting and Expansion
Management reports that permitting for the new TSF is progressing, with environmental approval anticipated in the third quarter of 2026. Rio2 is targeting an initial permitted capacity of 43 million tonnes, with a staged design that could ultimately expand to 170 million tonnes, supporting future mine life extensions.
Environmental and Safety Benefits
By adopting dry-stack tailings, Rio2 expects Condestable to become a best-in-class operation for tailings management, significantly improving safety and environmental performance. This move also supports the mine’s Copper Mark certification pathway, a leading assurance framework promoting responsible production in the copper, molybdenum, nickel, and zinc industries. Certification ensures compliance with environmental, social, and governance (ESG) standards aligned with the United Nations’ sustainable development goals.
Rio2 President and CEO Andrew Cox stated: “The operating team’s commitment to the highest environmental and safety standards has been impressive, and the beginning of the commissioning phase of the filter plant is strong evidence of this effort. It is also an important step for the next stage of growth at the mine, which we at Rio2 will be excited to unveil before the end of this year.”
Water Recovery Improvements
The company expects the move to tailings filtration will boost total water recovery from the current 60 per cent to nearly 90 per cent. This could provide headroom for further process growth without requiring additional water permits or increasing the draw on local water resources.
Recent Acquisitions and Debt Repayment
Rio2 completed the acquisition of its 99.1 per cent interest in Condestable in late January and has since moved quickly to integrate the asset. This included a voluntary US$20 million (A$28 million) vendor debt payment in late March, which extinguished a US$10 million (A$14 million) mezzanine note and reduced the senior promissory note to US$45 million (A$63 million).
Future Growth
With the filtration plant now in commissioning mode, Rio2 has a valuable lever at Condestable, offering cleaner tailings handling, vastly improved water efficiency, and a host of environmental benefits, along with a tailings platform and strategy that can grow with the mine. The company plans to outline its next stage of growth initiatives for Condestable before the end of the year.
