Global miner BHP has filed an environmental permit application to reopen Chile's Cerro Colorado copper mine at a cost of $US1.5 billion.
The Australian mining giant did not immediately respond to a request for comment.
Cerro Colorado, a small mine in BHP's Chilean portfolio, produced about 1.2 per cent of Chile's total copper output.
Copper miners across Chile, the world's top producer of the red metal, have been forced in recent years to find alternative means to feed water to their operations as drought and receding aquifers have hampered operations. Many have sharply reduced use of continental freshwater or turned to desalination plants.
Copper demand is forecast to rise 70 per cent between 2021 and 2050, creating opportunities and challenges for Chile, which already produces a quarter of the world's supply.
BHP owns the giant Escondida copper mine and has operated in Chile for over 30 years.
with AAP