Video Description
Peru and Xstrata Copper Sign Las Bambas Mining Project Transfer Contract.
Peru signs 'contract of the century' for Las Bambas project
September 2, 2010, Source:
Andina
Lima, Sep. 02 (ANDINA). Peruvian President Alan Garcia today witnessed
the signing of a contract which formally transfers the concessions for the
US$4.2 billion Las Bambas copper project to Xstrata Copper. The document was
signed by Jorge Leon, executive director of Peru's Private Investment
Promotion Agency (Proinversion) and Jose Marun, executive vice president of
Xstrata Operations in Peru, at a ceremony in the Government Palace in Lima.
The project development will entail an investment of US$4.2 billion and
construction is scheduled to commence in the third quarter of 2011, subject
to regulatory approvals.
In August Xstrata gave the go-ahead for the development of Las Bambas, with
production expected from the second quarter of 2014.
Las Bambas will be a world-class copper mine with initial production of
400,000 tonnes per annum of copper in concentrate, including significant
gold, silver and molybdenum by-products, and first quartile cash costs.
In August 2004, Xstrata obtained the exploration rights with an option to
acquire and operate the Las Bambas deposit for $121 million, according to
Dow Jones Newswires.
Peru is the world's second largest copper producer.
Peruvian Government and Xstrata Copper
Sign Las Bambas Mining Project Transfer Contract
Lima, 2 September 2010, Press Release, source:
Xstrata.com.
The Government transferred mining titles for the Las Bambas mining project
to Xstrata Copper in a contract-signing ceremony held on 2 September at the
Peruvian Government Palace, attended by the President of the Republic, the
minister of Energy and Mines, the president of the Apurímac region, the
executive director of ProInversión, provincial and district mayors,
representatives of the farming communities from the Las Bambas area of
influence and senior company officers.
Project development calls for an investment of US$4.2 billion. Construction
is scheduled to commence in the third quarter of 2011, subject to regulatory
approvals. Las Bambas will be a world-class copper mine with initial
production of 400,000 tonnes per annum of copper in concentrate. First ore
is expected to be processed in the second quarter of 2014 with ramp up and
full production reached by the end of that year. A substantial resource base
provides a mine life of at least 18 years with significant further
brownfield potential in the highly prospective Las Bambas Mineral District.
Ore will be mined at a rate of 51.1 million tonnes per annum from three open
pit mines (initially Ferrobamba, then Chalcobamba and Sulfobamba pits) and
processed in a 140,000 tonne per day sulphide grinding/flotation
concentrator.
Las Bambas will generate an average of approximately 3,600 direct jobs
during construction and 1,350 permanent jobs once in operation.
Xstrata Copper Southern Peru Division Chief Operating Officer José Marún
said : “Development of the Las Bambas project will provide significant value
not only for Xstrata Copper but also for surrounding communities through
direct and indirect employment and training opportunities, local business
development, infrastructure provision, payment of taxes and royalties, and
investment in community projects and partnerships; in addition, Las Bambas
will benefit from significant synergies with the recently approved
development of the Tintaya-Antapaccay expansion project.
“From our first involvement with the project, we have regarded our
relationship with the communities associated with Las Bambas as vitally
important and it is very pleasing to confirm that the dialogue we have
established between the community and the company has been recognised in the
strong public support the project enjoys."
Xstrata Copper Chief Executive Charlie Sartain said: “The Southern Peru
division has been growing progressively and we are now able to project a
production of over 500,000 tonnes of copper per year by the end of 2014. Our
entry into Peru took place in 2004, through the acquisition of the option to
explore Las Bambas by means of a bidding process conducted by the Peruvian
government through ProInversión, and then, we acquired Tintaya in 2006. Our
Las Bambas and Tintaya-Antapaccay projects are already materialising
together with expansion projects of our other assets in Peru, representing
significant growth for the Xstrata Group.
“Our dedication to the Las Bambas project over the past six years has
allowed us to rapidly transform it from an early stage exploration prospect
with no defined Mineral Resources to a significant project with resources of
over 1 billion tonnes that will support a long-life mining operation.
Moreover, in Xstrata Copper we understand that it is necessary to work
together with local stakeholders, to ensure the project will provide
sustainable benefits to the communities and region as a whole; and this is
what we have done over this time.
“Peru’s suitable environment for investments, based on legal and political
stability with clear and stable rules of the game, enabled us to make and
announce these investments. Beyond any doubt, the strengthening of democracy
has been a cornerstone in the foundations of the country’s development.”
Xstrata Copper contacts:
Domingo Drago
Telephone +511372 2233
Mobile +511 989259180
E-mail
ddrago@xstratacopper.com.pe
About Xstrata PLC
Xstrata is a global diversified mining group, listed on the London and Swiss
Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata’s
businesses maintain a meaningful position in seven major international
commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel,
vanadium and zinc, with additional exposures to platinum group metals, gold,
cobalt, lead and silver, recycling facilities and a suite of global
technology products, many of which are industry leaders. The Group's
operations and projects span 19 countries.
About Xstrata Copper
Xstrata Copper is the fourth largest global copper producer with
attributable mined production in 2009 of 907,000 tonnes of copper in
cathodes and concentrates. The company is also one of the world’s largest
producers of smelter and refined copper, including from third party
materials. Headquartered in Brisbane, Xstrata Copper is one of the commodity
business units within the major global diversified mining group Xstrata plc.
Its mining and metallurgical operations and development projects span eight
countries: Argentina, Australia, Canada, Chile, Peru, the Philippines, Papua
New Guinea and the USA. Its operations and projects are administered through
a regional divisional management structure, which ensures that appropriate
levels of critical decision making are taken close to the related
businesses. It also has a recycling business (Xstrata Recycling) with plants
in the United States and offices in Canada and Asia.
About Xstrata Copper's Southern Peru
Division
In November 2007, Xstrata Copper announced the creation of the Southern Peru
Division, headquartered out of the city of Arequipa. The division is
responsible for the management of the Tintaya mining operation, the Las
Bambas, Antapaccay and Coroccohuayco development projects, regional
exploration and the development and implementation of the company’s growth
strategy in southern Peru.
Tintaya-Antapaccay
Acquired in May 2006, the existing Tintaya
operation consists of a concentrator and SX/EW plant and has annual
production of approximately 100,000 tonnes per annum of copper in
concentrates and cathodes. In July 2010, Xstrata Copper announced the
development of the satellite Antapaccay deposit that will increase annual
copper in concentrate production from Tintaya by 60% to an average of
160,000 tonnes from mid 2012 and transform the mine into a long life
business with at least 20 years of operations, based on currently known
mineral resources.
Las Bambas Mining Project
In August 2004, Xstrata was awarded the
right to explore and the option to develop Las Bambas following a
competitive international bid process conducted by Peru’s investment
promotion agency ProInversión. The project sits at an elevation of 3,700 to
4,650 metres above sea level and is located in the provinces of Cotabambas
and Grau in the Region of Apurímac, 75 kilometres southwest of the city of
Cusco. The Las Bambas mining project extends of 35,000 hectares and includes
the Ferrobamba, Chalcobamba, Sulfobamba and Charcas mining concessions.
The current Las Bambas Mineral Resource estimate is 1.13 billion tonnes of
copper mineralisation at a grade of 0.77% copper, using a 0.3% copper
cut-off grade, and includes important gold, silver and molybdenum by-product
credits. The Mineral Resource was completed in 2009 and includes the results
of 329,000 metres of drilling.
Loading...
