Peruvian Minera Antamina Approves $1.28 Billion Expansion Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--The largest private investment to be implemented in Peru in 2010 was recently approved by the board of copper and zinc producer Compania Minera Antamina SA (Lima, Peru). After eight years of operations and the announcement of a 77% increase of its minerals ore reserves, the company has approved a $1.29 billion expansion project of the Antamina copper-zinc mine.

Antamina is an open-pit, truck and shovel mine operation in the San Marcos district Peru's Ancash Region, about 270 kilometers northeast of Lima. The ore mined is processed through a conventional grinding and flotation circuit to produce concentrate. Originally, the concentrator plant was designed to process 70,000 tons per day. The copper and zinc concentrates are sent to Huarmey Port on the Pacific coast through a 302-kilometer pipeline to be shipped abroad.

The project entails an expansion in the capacity of the concentrator plant, the construction of a new 55-kilometer power transmission line, the acquisition of new mining equipment, and the improvement of water management and the tailing storage system. Once completed, the project will increase Antamina's ore processing capacity by 38%, reaching 130,000 tons per day. Copper and zinc production will increase by approximately 30%. Furthermore, the project will extend mine life by six years to 2029.

Commencement of construction is planned by mid-2010, and project completion is set for the end of 2011. Aker Solutions ASA (Oslo, Norway) will be in charge of the engineering, procurement and construction of the entire project. Approximately, 2,700 employees will be required for construction, and once operational, 500 new permanent jobs will be created.

Minera Antamina is a joint-venture between BHP Billiton Limited (NYSE:BHP) (Melbourne, Australia) (33.75%), Xstrata plc (LSE: XTA) (Zug, Switzerland) (33.75%), Teck Resources Limited (NYSE:TCK) (Vancouver, British Columbia) (22.75%) and the Mitsubishi Corporation (OTC:MSBHY) (Tokyo, Japan) (10%). Antamina became operational in October 2001 and with a capital expenditure of approximately $2.3 billion, was the largest private investment in Peruvian mining history.

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