BUENOS AIRES (miningweekly.com) – Australia's Andean Resources will spend $200-million to build its Cerro Negro gold and silver project, in the north of the Argentine province of Santa Cruz, the company informed the South American country's Minister of Federal Planning and Public Investment, Julio De Vido, this week.

At a meeting with National Mining Secretary Jorge Mayoral on Thursday, CEO Wayne Hubert confirmed that the company plans to start work on the project in the second half of this year, the Argentine Mining Chamber said in a statement.

The development of the project will take more than 20 months and will include the construction of a reservoir, a processing plant, camp installations and civil engineering.

The company said that 115-million Argentine pesos will be spent on local construction work, including roads and a power line with substations, which is expected to boost the development of other regional productive activities.

The construction project is expected to create more than 1 500 direct and indirect jobs and generate work for at least 70 small and medium-sized enterprises that offer services to mining or other related industries.

Once the construction stage is finished, the mine will produce 300 000 oz of gold and three-million ounces of silver a year, and will employ more than 1 000 people.

Miguel Ferro, the president of State-owned Fomicruz told local online newspaper TiempoSur.com that Santa Cruz was Argentina's top province in gold and silver production, as well as in investments and exploration.

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