PERTH (miningweekly.com) – Copper miner Altona Mining has amended its joint venture (JV) agreement with Chinese partner Sichuan Railway Investment Group (SRIG) over the Cloncurry project, in north-west Queensland.
Altona on Tuesday noted that SRIG has now been replaced as the JV partner by China Sichuan International Investment Company (CSII), which is 50% held by SRIG and 10% owned by its Shanghai-listed subsidiary Sichuan Road and Bridge.
The other shareholders in CSII are State-owned enterprises of the Province of Sichuan, Sichuan Huashi Group and Chengdu XingChen Investment.
CSII will still contribute $213.5-million to the JV and will own 66% of the project, with Altona to contribute $25-million and hold a 34% share.
Altona told shareholders it can meet its contribution obligation from its A$39.9-million cash balance at the end of December, with the companies already having agreed to a $3.1-million expenditure by Altona under an agreed works programme, which will be offset against the obligation.
The JV has been approved by the Chinese regulator and the State-Owned Asset Supervision and Administration Commission of the State Council of the Sichuan Province, and is under consideration for approval by the Sichuan provincial government. The Foreign Investment Review Board is also expected to deliver an approval shortly.
The JV partners intend to develop a seven-million-tonne-a-year openpit mine and flotation plant capable of producing 39 000 t/y copper and 17 000 oz/y of gold over an initial mine life of 11 years.