Antamina expansion approved

Summary

The operator of Antamina has approved a US$1.3 billion investment to expand ore processing capacity at its mine site by 38% to 130,000t/d. Xstrata holds a 33.75% interest in the company, which operates the Antamina copper-zinc mine in Peru's Ancash region. In November 2008, Antamina had announced a 77% increase to mineral reserves to 745Mt following an intensive in-pit exploration programme. This increase was incorporated into the expansion feasibility study, enabling Antamina to approve this expansion to processing capacity and extend the mine life by six years to 2029. Xstrata Copper chief executive Charlie Sartain says: "This is the third brownfield expansion of an operation involving Xstrata Copper that has been approved in recent months, following the announcements to construct Lomas Bayas II in October and Ernest Henry underground earlier in December…these three projects provide a firm foundation for Xstrata Copper to implement its business strategy to grow production by 60% to 1.5Mt in 2015." The expansion will require the acquisition of new mining equipment, an expansion to the truck workshop and concentrator plant, the construction of a new 55km electric power transmission line, and enhancements to the current water management and tailings storage systems. The expansion will create 2,726 jobs in the construction phase and 500 additional permanent positions.