Diversified miner Xstrata has approved $1,47-billion in capital expenditure to develop the Antapaccay copper project, in southern Peru, which forms part of the group’s overall strategy to grow its copper output by 50%, to just under 1,5-million tons a year, by 2014.

The announcement came only a day after the Peruvian authorities approved the environmental- and social-impact studies for the project, which would be developed as a low-cost, brownfield expansion to the existing nearby Tintaya copper mine.

Production at the new mine is expected to start in the second half of 2012, at about the same time that the Tintaya mine is expected to reach the end of its life-of-mine.

The Antapaccay project will use some of the existing infrastructure from the Tintaya complex, and will produce about 160 000 t/y of copper-in-concentrate over the first six years of its estimated minimum 20-year mine life.

Xstrata Copper CEO Charlie Sartain noted in a conference call last week, that the new project would substantially increase the life of the Tintaya-Antapaccay mine area, while also improving the operating costs for the operation.

“When Xstrata acquired Tintaya in 2006, the operation was nearing the end of its mine life. 
“The development of the Antapaccay project will continue the operation’s trans-formation into an impressive, long-life, low-cost operation,” said Xstrata CEO Mick Davis.

It would cost Xstrata about $0,90/lb in operating costs at the new mine, compared with the current operating costs of 
$1,40/lb at the Tintaya mine.

A modern 70 000-t/d concentrator would be established at the new mine, while the Tintaya openpit would be used to store tailings from Antapaccay.

Sartain said that this would be the first project to use Xstrata’s new standard concentrator design, which would be replicated at other projects.

The standard design incorporated a 40-foot semiautogenous grinding mill and two 26-ft bore mills. 
The crushing and grinding and the flotation circuits would also have a number of standard features.

He added that the long-lead items for the project had already been ordered, with the mills expected to be on site by September or October.

The construction phase, which would start in the third quarter of this year, 
would create about 3 000 direct jobs, while Xstrata expected the operation itself to create permanent employment for 1 100 workers.

This would create an additional 100 jobs, compared with the current Tintaya workforce, which was expected to migrate to the new operation.

Further, Sartain noted that the region around the Tintaya mine was a significant minerals district, where it had already identified another separate 90-million-ton copper resource, Coroccohuayco, which could also add to the production potential in that region.

Copper Major

Meanwhile, Sartain said that this project was another example of the fact that the global miner was progressing towards being a leading copper producer.

It was already the fourth-largest copper producer in the world and produced 
907 000 t of copper in cathodes and concentrates during 2009.

Sartain added that the Antapaccay project was an enabling project for the larger Las Bambas project, which Xstrata Copper wanted to develop in southern Peru.

Xstrata was expecting to obtain approval for the 400 000-t/y Las Bambas mine by the first quarter of next year, after which production would start in the first half 
of 2014. 
This greenfield project was expected to cost about $4,2-billion to develop.

Further, Sartain highlighted that the producer had a portfolio of other greenfield projects in the prefeasibility study or feasibility study stage that would provide for the next phase of organic growth beyond the Antapaccay and Las Bambas mines.

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