Green light for Xstrata and Anglo in Chile

23rd Jun 2011 09:18

Mining giant Xstrata said the pre-feasibility study for the expansion of Chile's Collahuasi copper mine has been approved, adding that the study is expected to be completed in the first half of 2012. The project should see the construction of one or two new grinding lines, which would result in a processing capacity of between 270,000 and 380,000 tonnes of ore a day. This will increase the production from the current annual average of approximately 500,000 tonnes of copper to 800,000 tonnes with a single line expansion, and to more than one million tonnes with both lines, the company said. "This expansion project is aligned with Collahuasi's growth plan that seeks to increase annual output to more than one million tonnes of copper supported by Collahuasi's significant Mineral Resource of 7.1 billion tonnes at an average grade of 0.82%," said Giancarlo Bruno, Collahuasi chief executive officer.Xstrata and diversified miner Anglo American each own a 44% stake in Collahuasi, Chile's third-largest copper mine, while a group of Japanese companies headed by Mitsui & Co hold the remaining 12% stake.The project is expected to be commissioned in 2017. AR