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BHP CEO Andrew Mackenzie flagged the expansion in May, which follows the completion of the third concentrator and desalination plant.
The expansion of the Los Colorados concentrator will help to offset grade decline and add incremental copper production of 150,000 tonnes per annum over the next decade.
Guidance at Escondida for the 2016 financial year is 940,000 tonnes, and produced 711,000t in the nine months to March 31.
BHP said from the start of FY17, average production would rise to 1.2 million tonnes per annum for the next 10 years.
BHP is the manager of the mine as 57.5% owner. Rio owns 30% with Japanese consortiums holding the balance.
The Los Colorados concentrator was placed on care and maintenance in the March quarter and had previously been slated for demolition.
BHP expects unit costs at Escondida to drop to $1 per pound in FY17.
Shares in BHP were down by A1c to $19.52, while Rio shares gained 19c to $47.97.
