Chile approved the sale of 66% of the Inca de Oro copper and gold mine to the Australian mining company PanAust.

Mr Diego Hernandez head of the state run copper giant Codelco said that PanAust is paying USD 55.3 million for its stake in the operation. Chile's state controlled Corporacion Nacional del Cobre de Chile will partner with PanAust to develop the mine.

Geologists believe there are some 259 million tonnes of copper and gold in the mine. Recent studies said that an open pit mine at the site could produce nearly 50,000 tonnes of copper and 40,000 ounces of gold a year. Copper, which is used in plumbing, heating, electrical and telecommunications wiring has seen its price rise dramatically since mid-2010.

(Sourced from www.skynews.com.au)