Toronto-based Falconbridge (TSE) and joint-venture partner Minorco will spend $1.75 billion to develop the Collahuasi copper project in northern Chile.
Collahuasi is one of the world’s largest undeveloped deposits of the red metal, with a confirmed geological resource of 3.1 billion tonnes averaging 0.82% copper at a cutoff grade of 0.4%.
The feasibility study calls for annual production of 330,000 tonnes of copper in concentrates and 50,000 tonnes of copper cathode for the first seven years.
The project is believed to have sufficient reserves to support mining operations for more than 50 years.
A final decision to proceed with development at Collahuasi is expected in the first half of 1996. This decision is contingent upon obtaining regulatory and environmental approvals, in addition to procuring marketing and financing agreements. Falconbridge is expected to fund its share of development costs using a combination of debt and equity financing.
Once approvals and agreements have been obtained, Falco and Minorco will begin developing the project, with production earmarked for 1999.
Falconbridge’s share of production will amount to 190,000 tonnes of copper, representing a 137% increase over its overall 1994 production level of 140,000 tonnes of copper.
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