The massive, $US2.3-billion Antamina copper-zinc project in Peru has reached another milestone on its road towards full commercial production, which is slated for later this year.
Antamina is a joint venture involving Noranda (NOR-T) with 33.75%, London-based Billiton with 33.75%, Teck (TEK-T) with 22.5%, and Japan-based Mitsubishi with 10%.
The partners have announced that the project’s facilities have reached mechanical completion — more than two months ahead of the original schedule.
All processing and non-processing facilities, including crushers, grinding mills and tailings facilities, have undergone pre-operational checks and commissioning activities. The primary crushers are processing. The concentrator and associated infrastructure have been tested with rock feed. The 300-km concentrate pipeline to Puerto Huarmey has been water-tested. The port facilities have completed pre-operational checks in preparation for receipt of concentrate slurry.
The project has commenced a ramp-up period. It is expected to reach its full commercial production process rate of 70,000 tonnes of ore per day by December. It is running slightly under the original budget of US$2.3 billion.
Antamina is slated to become the world’s seventh-largest copper producer and third-largest zinc producer. Over 20 years, annual production is forecast at 600 million lbs. copper and 360 million lbs. zinc, plus 5.7 million lbs. molybdenum and 6.2 million oz. silver.
Cash costs are expected to average less than US30 per lb. copper in the first 10 years and US35 over the life of the mine (net of byproduct credits). The project is expected to generate a leveraged rate of return of at least 15%, based on a copper price of US95 per lb. and a zinc price of US55 per lb.
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