Aker Solutions signs EPCM services contract for the Minera Chinalco Peru, SA Toromocho Project
6 October 2009 - Aker Solutions has been awarded the detailed engineering, procurement, and construction management (EPCM) services on the Toromocho Project for Minera Chinalco Peru S.A. The contract value to Aker Solutions is approximately USD 143 million. The Toromocho mine site will become one of Peru's largest copper mines in 2012.
Source:
Aker Solutions, Press Release
Resources and expertise from the Aker Solutions offices in Tucson, Arizona, USA; Santiago, Chile; Lima, Peru; and Shanghai / Beijing, China, will be involved in delivering this project. Aker Solutions also previously completed the feasibility study and basic engineering for this project.
The Toromocho Project is a mining and processing ore facility located approximately 140 km east of Lima, in the Morococha District in central Peru. The project requires the development of a large open pit mine, followed by ore processing at a rate of 117,200 tonnes per day, to produce copper concentrates. The location elevations range is from 4 500 to 5 000 metres above sea level.
David Lawson, President, Aker Solutions' Metals business, said: "We are very pleased to be awarded this important project which is Chinalco's first major mining investment in South America. Our goal is to deliver this USD 2.2 billion total installed cost (TIC) project in such a way that we meet or exceed the expectations of all the stakeholders. This project is another example of what we can achieve utilizing a globally integrated project team."
Aluminum Corporation of China Ltd. (Chinalco) will manage the project through its subsidiary, Minera Chinalco Peru. Toromocho is expected to produce 225,000 tonnes of copper annually. In addition, silver will be recovered in the copper concentrate and molybdenum tri-oxide will be produced as a valuable by-product of the processing.
The Aker Solutions contract entity is Aker Metals Inc.
Toromocho Copper Mining Project
In 2007, Aluminum Corporation of China (Chinalco) acquired 100% of Peru Copper Inc. (listed in Canada, US and Peru prior to Chinalco's acquisition) for US$860 million. Peru Copper Inc owns the development rights to the Toromocho copper mining project in Peru. Chinalco believes that Toromocho is one of the highest quality undeveloped copper projects in the world, taking into account factors such as its significant reserve, low stripping ratio, long life and infrastructure support. Its estimated reserve of copper is over 7.3 million tonnes and estimated resource is over 12 million tonnes, significantly increasing Chinalco’s copper reserve for future production. Chinalco expects to invest US$2.15 billion in the project to achieve a planned capacity of copper metal of 250,000 tonnes per annum by 2012.
This project represents an important step in Chinalco’s strategic expansion outside China. Chinalco expects to utilise its financial and technical strengths to develop the Toromocho Project.
Chinalco is China’s largest diversified mining company and one of the fastest growing companies in China.
Source:
Chinalco.com
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