Mining Journal > Production and Markets > Codelco plans Radomiro Tomic expansion

Production and Markets

Codelco, the world’s largest copper producer, said it plans a second phase of expansion at its Radomiro Tomic mine in Chile.

The expansion will extend the life of the mine, part of its Norte division, by 20 years, Codelco said in a statement distributed in Calama, Chile, 764 miles north of Santiago.

The expansion would be ready by 2015 or 2016 and produce between 200,000t and 300,000t a year of copper to replace lost production at nearby Chuquicamata, according to Sergio Jarpa, head of the Norte division.

Codelco is investing US$2 billion this year to try and halt four straight years of lower production, during which copper prices rallied on surging demand from China.

“We have a world class deposit here at Radomiro Tomic,” said Fernando Vivanco, Codelco’s head of projects. The first phase of expansion at Radomiro Tomic, which began last year, should be complete by next May, he added.

Codelco is building an ore crusher and 8.2km conveyor belt to transport ore from its Radomiro Tomic open-pit to a smelter at nearby Chuquicamata where output is declining, Chief Executive Officer Jose Pablo Arellano told reporters at the mine site today. The US$382 million first-phase expansion investment will boost production by 160,000t of copper a year.

Codelco combined Chuquicamata and the newer Radomiro Tomic mine seven years ago to form the Norte division, the largest of its four mining divisions. Production from the two mines declined 16% last year to 755,258t of copper, from 896,308t in 2007 because of the declining quality or ore, according to the company’s Web site.

The company will build a US$2 billion underground mine at Chuquicamata as the current open-pit stops being profitable. The underground mine will produce 340,000t a year of copper over 50 years and Codelco plans to start a feasibility study on the project this year.

June 26 (Bloomberg)