Mineral explorer VMS Ventures Inc said that its joint venture partner HudBay Minerals Inc has approved the CAD 71 million (USD 68.5 million) capital expenditure required to start construction of the Reed copper project in Manitoba.

The Reed copper project, which is 30% owned by VMS venture, is expected to be operational by late 2013.

Earlier on Monday, HudBay said it expected copper production to fall next year, hurt by the closures of its Trout Lake and Chisel North mines in Manitoba.

The Reed copper project is expected to produce daily ore of about 1,300 tonnes by 2013-end.

(Sourced from Thomson Reuters)