Antapaccay Copper Project

Xstrata to Invest USD 1.47 billion in Antapaccay Copper Project

07.07.2010 | Editor: Marcel Dröttboom

Xstrata has approved investment of USD 1.47 billion to construct Antapaccay copper project.

Brisbane, Australia – The Xstrata Board has approved an investment of USD 1.47 billion to develop the Antapaccay copper project as a major long-life, low cost brownfield expansion to the Tintaya copper mine in southern Peru. The Peruvian authorities have recently approved the project’s Environmental and Social Impact Study.

Antapaccay is located approximately 10 kilometres from the Tintaya open pit mine and will use some of Tintaya’s existing infrastructure. The commencement of this new mine is designed to coincide with the existing mine at Tintaya reaching the end of its life in 2012. Development of the Antapaccay deposit will increase annual copper in concentrate production from Tintaya by 60 percent to an average of 160000 tonnes for the first six years and transform the mine into a long life business with at least 20 years of operations, based on currently known mineral resources. Tintaya-Antapaccay will enjoy significantly reduced costs as a result of lower mine strip ratios, economies of scale and the construction of a modern concentrator facility. The remnant Tintaya open pit will be used to store tailings from Antapaccay, reducing considerably the project’s environmental footprint and capital costs. The ore will be processed in a new 70000 tonne a day concentrator facility and the concentrate will be transported by truck to Matarani Port for shipment to worldwide customers.

Construction of Tintaya-Antapaccay will commence in the third quarter of 2010 and operations are expected to be commissioned in the second half of 2012. Some 3000 direct jobs are expected to be created on average in the construction phase and the operation will employ a permanent workforce of 1100 people, including 100 new jobs that will be created in addition to the existing Tintaya workforce once operations begin.

Xstrata Copper’s Southern Peru Division is also developing the major Las Bambas project in neighbouring Apurimac Region that will benefit from some of Antapaccay’s infrastructure and require an indicative capital investment of USD 4.2 billion. The project’s feasibility study has been completed, the Environmental and Social Impact Study has been presented for approval to Peruvian authorities and the citizen participation process is now underway.

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