Xstrata approves US$1.47bn copper project

Finance

Publishing Date: 07 Jul 2010 1:26pm GMT
Author: Mining Journal

The directors of Xstrata plc have approved the US$1.47 billion Antapaccay copper development in Peru.

The project will be a brownfield expansion to the company’s Tintaya copper mine 10km away, adding 60% (60,000t/y) to existing production for the first six years. Authorities recently approved the project’s environmental and social impact study, paving the way for its development.

The project’s commencement will coincide with the existing mine at Tintaya reaching the end of its life in 2012. Antapaccay’s current known resources suggest a 20-year life of mine.

The project will use some of Tintaya’s existing infrastructure, but a modern 70,000t/day concentrator will be built. Tintaya’s open pit will be used as the tailings storage facility, saving capital and reducing the environmental footprint.

Work will begin in the September quarter this year, and production is expected in the second half of 2012.