Toronto-based resource giant Rio Algom (TSE) has made the necessary arrangements for a US$180-million financing package needed to develop the Cerro Colorado copper mine in northern Chile.
After an initial drawdown, Rio Algom says its Chilean subsidiary has started work on the project which is scheduled to produce 40,000 tonnes of high-quality copper cathode annually from an open pit beginning in 1994. Financing for the project is being provided by import lenders Kreditanstalt fur Wiederaufbau and HH International S.A. in connection with long-term sales contracts and by a commercial bank syndicate jointly led by Citibank, N.A. and the Fuji Bank Ltd.
The balance of the US$290 million needed to complete construction and put the mine into production is being provided by Rio Algom. Estimated minable reserves of 79 million tonnes grading 1.39% copper per ton are expected to sustain a mining operation for at least 23 years. The project is also expected to employ over 400.
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