Silo Breaker reported that Chile's state copper producer Codelco has approved going ahead with the basic engineering study which for the company is also the feasibility study for the transition to underground mining at its Chuquicamata mine.

In 2012 Codelco aims to start building the underground Chuquicamata operation in addition to a new underground level at its El Teniente mine, the Phase II of expansions for its Andina mine and a new operation called Ministro Hales. Underground Chuquicamata is expected to start operating in about 2018. During that year the company expects it will have to spend roughly USD 7 million per day in investments to develop the 4 projects. This year the company has advanced all four initiatives to feasibility stage.

Codelco hired Hatch to carry out the basic engineering study for Chuquicamata, a service worth USD 83 million that is expected to take 36 months to complete. Converting Chuquicamata into an underground mine with 340,000 tonne per year output will call for USD 2.0 billion in investment.

The Ministro Hales mine, set to produce 170,000 tonnes per year has a USD 1.61 billion price tag and is expected to be completed in 2013. The Phase II of expansions at Andina will cost USD 4.60 billion is scheduled for completion in 2015 and will boost the mine's output to 350,000 tonne per year.

(Sourced from Silobreaker.com)