August 22, 2008

Xstrata to spend AUD 26 million to develop Ernest Henry Copper mine

It is reported that Swiss based Xstrata Plc will spend AUD 26 million (USD 22 million) on underground mine development work as it seeks to extend the operating life of its Ernest Henry copper and gold mine in Australia.

The investment is part of the company's plans to potentially extend the life of the mine by converting it to an underground site.

Xstrata said the construction of the decline is likely to start in February, with around 75,000 tonnes of copper concentrate expected from underground production during 2011-12.

It added that a further feasibility study to evaluate the viability of full scale underground mining operations will start early 2008 and run parallel with the development of the Stage 1 decline.