Xstrata Copper’s USD 1.47 billion Antapaccay copper project in southern Peru has commenced commissioning on time and within budget with first copper production scheduled for October. Total Mineral Resources have been increased by 27% to over 1 billion tonnes.
Antapaccay is a major new long life, low cost copper operation with a mine life of more than 20 years situated approximately 10 kilometers from our Tintaya open pit mine where mining activities are scheduled to complete in the coming months. Antapaccay will benefit from Tintaya’s existing administrative and logistics infrastructure and experienced workforce. The operation will initially produce an average of 160,000 tonnes of copper in concentrate per annum, plus gold and silver by product credits at first quartile cash costs. Ore will be processed in a new 70,000 tonnes per day concentrator facility and concentrate will be transported to Matarani Port for shipment to customers worldwide.
We have identified additional Mineral Resources in the southern pit of the Antapaccay ore body that will add further value to the project. Total Mineral Resources have increased by 27% to over 1 billion tonnes at a grade of 0.49% copper using a cut-off grade of 0.15% copper, including gold and silver by product credits. This represents a 15% increase in contained copper to 5 million tonnes. The previously published Mineral Resource in 2011 estimated total resources at 813 million tonnes at a copper grade of 0.52% using a cut off grade of 0.2% copper.
Pre feasibility studies are underway at the adjacent Coroccohuayco deposit, nine kilometers from Tintaya Antapaccay where we announced a Mineral Resource of 324 million tonnes at 0.93% copper in December 2011. If developed, Coroccohuayco could augment Tintaya Antapaccay’s production and mine life.
Mr Mick Davis CEO of Xstrata plc said that “Tintaya Antapaccay is a great example of our ability to identify and execute opportunities to create value. Our acquisition of Tintaya for a headline price of USD 750 million including the Antapaccay and Coroccohuayco deposits in 2006 repaid its acquisition cost in full within 18 months and the mine has generated over USD 2.5 billion of EBITDA to date. The Antapaccay expansion to Tintaya has reached commissioning in just 5 years from the pre feasibility study stage, on time and on budget. With an industry leading capital intensity of less than USD 10,000 per tonne and total capital cost of USD 1.47 billion, Antapaccay will double current production at Tintaya significantly reduce operating costs and provide more than 20 further years of operations. Antapaccay will earn Xstrata’s cost of capital at a copper price of USD 1.91 per pound over the life of mine.”
Mr Charlie Sartain CEO of Xstrata Copper said that “The new Antapaccay mine will transform our operations in Southern Peru. Antapaccay is one of four copper projects that we are commissioning this year including the successful major expansion at our Antamina JV operation in Peru which commissioned in March and is already running above expanded nameplate capacity. These projects will drive an increase in Xstrata Copper’s total copper production to an annualized rate of one million tonnes by the end of the year.”
He said that “During construction 100% of unskilled labour was drawn from the local community. The Antapaccay operation will employ a permanent workforce of 1,100 people including 127 new jobs. The expansion and extension of operations at Tintaya Antapaccay will allow the operation to continue to make a major contribution to Espinar province, in Cusco region, including important local infrastructure, benefits for local suppliers, skills training and enterprise development increased royalty and tax revenues and substantial annual investment in community projects and partnerships from our voluntary contributions and the Tintaya Framework Agreement.”
Source - Xstrata Copper
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