BHP Billiton has approved a total investment of $US2.6 billion in two projects that will underpin higher production at its Escondida copper mine in Chile over the next decade.

Located 3100m above sea level and 170km south-east of the of Antofagasta in Chile, the Escondida mine is owned by BHP Billiton (57.5 per cent), Rio Tinto (30 per cent), JECO Corporation (10 per cent) and JECO 2 Ltd (2.5 per cent).

BHP Billiton operates the mine.

On Tuesday BHP announced the Organic Growth Project 1 would replace the Los Colorados concentrator with a new 152,000 tonne per day plant and allow access to higher grade ore located underneath the existing facilities.

Construction will begin in February next year with commissioning anticipated in the first half of the 2015 calendar year.