Located some 35 kilometres from Antofagasta in La Negra, northern Chile and within close proximity of the driest place on earth. The BAYESA operated project provides water for an increasing number of industrial companies in Antogagasta and the surrounding areas.
 
In 1998 Noranda, a Canadian owned company, purchased a copper smelter named Refimet, which operated in Antofagasta as Alto Norte Smelter. In 2006 Noranda was purchased by Xstrata, a Swiss based mining company. Significant development in the area has occurred since Noranda increased their investment and expanded production.

Chile is dependant on the production of copper being its biggest export and accounts for 40% of the world’s annual output.

This new expansion has seen many companies relocate to the area because of the proximity of the major mining companies and has led to an increased need for water. Many of these new companies have access to electricity but have only limited access to water supply. 
Previous water resources were supplied from wells in Yungay, approximately 100 kilometres from Xstrata, but have a very high cost and limited supply. 

Due to the aridity of the land, this project is backed by the regional authorities who believe that as there is a water resource in the area many companies currently located in Antofagasta will wish to relocate their facilities.

The water comes from treated effluent and from the works in Antofagasta where it has been treated to comply with international standards and stored in the Grandon reservoir before distribution. Previously the wastewater from Antofagasta was pumped into the sea causing pollution and harm to marine life, however now effluent is treated to a high standard to allow it to be recycled in industry.

The project consists of a 12 kilometre impulsion pipe from the Grandon reservoir to the Caracoles storage reservoir on the Salar del Carmen.

Two pumping stations are used to take the water from 70 metres above sea level to 600 metres above sea level.

Once the water reaches the Salar del Carmen it is gravity fed through a 27 kilometre pipeline that follows the Pan American highway to the Xstrata smelting works.

Supply is guaranteed 24 hours a day. Due to the Caracoles storage reservoir being located near to the water treatment plant in the Salar del Carmen it is possible should either of the pump stations suffer a power failure to interconnect to the potable water supply from the plant to continue to supply Xstrata via the gravity main.