Codelco to Increase Production of World's Biggest Underground Copper Mine

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Researched by Industrial Info Resources (Sugar Land, Texas)--Chile's state-owned miner Codelco (Santiago) is about to complete preliminary engineering studies for the expansion of the world's biggest underground copper mine, El Teniente, located about 80 kilometers south of Santiago, near the town of Rancagua.

The project, known as "El Teniente New Mining Level," aims at deepening the current Teniente 8 haulage level to increase production from 131,000 tons per day to 180,000 tons per day of fine copper. SKM Minmetal (Santiago, Chile) is performing the engineering studies for the new production section. Basic and detailed engineering studies will start next year. Codelco expects to select a construction firm by mid-2009 in order to start construction in the fourth quarter of 2009. The project is scheduled to be completed by 2017. The capital cost for developing this project is estimated at $1.5 billion. With the implementation of this project, El Teniente, which has been operational since 1905, will increase its life another 40 years. With reserves of more than 1.5 billion tons of ore and a copper grade of 0.96%, it constitutes the main project of the division. According to the company, the reserves are so vast that production could last at least another century.

In addition, Codelco is developing another project at the El Teniente mine, called Pilar Norte. This project, worth $100 million, is an underground operation with reserves of 38 million tons of ore with a copper grade of 1.32% that will feed 17,000 tons per day to the existing processing plant. Zublin International GmhB Chile Limitada (Santiago, Chile) is developing the construction of this project, which is scheduled to be completed by early 2010.

Codelco is the world's largest copper producer, holding about 20% of the world's copper reserves, and is also a world leader in molybdenum production and sales.

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