The transaction, which is subject to several conditions, is expected to be completed by the end of May 2015.
The water division, known as Aguas de Antofagasta, delivers potable desalinated water to domestic and commercial customers under a 30-year concession in Antofagasta region of Chile.
It contributed $63.6m to Antofagasta’s profit before tax in 2014, with earnings before interest, taxes, depreciation and amortization of $75.1m.
Aguas de Antofagasta had gross assets of $212m at the end of 2014.
Antofagasta CEO Diego Hernandez said: "This sale will allow Antofagasta to focus even more closely on its mining business and to advance its various development projects, whilst reinforcing the strength of our balance sheet."
Established in 2003, Aguas de Antofagasta collects and treats wastewater. It is also involved in collection, treatment, and disposal of sewage.
The company provides water transport services and consulting, engineering, and construction services for industries and mines.
It has a network of 1,140km of pipelines in Calama, Tocopilla, Taltal, Mejillones, and Antofagasta.
Image: Aguas de Antofagasta delivers potable desalinated water to domestic and commercial customers in Chile. Photo: courtesy of Antofagasta.
