Codelco will cancel a contract it awarded in November to a consortium led by Japanese firm Marubeni Corp. to construct a desalination plant, Reuters reported Dec. 20, quoting a company statement.

"Between awarding the tender and signing the contract we identified adjustments to be made to the project, prompting a decision to redefine the tender, which will take place within the next 24 months," Codelco said.

The project was set to have an initial capacity of 840 liters per second, with work expected to start in the first quarter of 2020 and operation anticipated to begin in 2022.