Photo by: Bloomberg
TORONTO (miningweekly.com) – Following a tragic accident in which joint venture firm Minera y Metalurgica del Boleo (MMB) lost its COO in a flash flood associated with hurricane Odile, which struck the West Pacific seaboard off Mexico and the US last month, the company, comprising a consortium of Korean companies and TSX-V-listed Baja Mining, this week appointed Sang Bum Lee successor.
His responsibilities would include directing construction completion activities at the Boleo copper/cobalt/zinc/manganese project, including commissioning and start-up, and managing subsequent operations of the project.
The Boleo project, an advanced-stage polymetallic project, near Santa Rosalía, on the tidewater of the east coast of the Baja peninsula, was currently one of the largest copper deposits under development in North America.
Lee has had a long and successful career in the nonferrous metals (zinc, lead and precious metals) industry, gained in Korea, Australia, Europe and the US in various positions involving technical process engineering, plant construction, production management, and commercial and global business management.
Meanwhile, Baja reported that MMB had confirmed that damage to the Boleo site caused by Hurricane Odile was minimal. As a result, MMB expected to produce first copper by the end of this month.
The Boleo project had several times teetered on the brink of failure since 2012, when Baja reported a budget blowout of between $200-million and $400-million more than the $1.14-billion estimated in 2010.
Baja founder John Greenslade then resigned as president and CEO, after which investors sued the company, only to be rescued by the consortium of Korean lenders, which bailed it out and assumed a majority position in the company.
Baja had to give up 60% ownership in the project since troubles started and currently held 10% of MMB. However, in its second-quarter management discussion and analysis, the company conceded that it might be forced to further dilute its position, should MMB make a cash call to fund the ultimate capital and operating budget of $1.88-billion for 2014.
The Boleo property covers about 11 000 ha of mineral concessions and 7 000 ha of surface occupancy rights. It will be developed as a series of underground mines and small opencut mines feeding a central processing plant.
The project contains 265-million tons of measured and indicated resources, grading at 1.5% copper equivalent, with a further 159-million tons of inferred resources, grading at 1.15% copper equivalent.
The envisaged average yearly production for the Boleo project’s first four years at full operating capacity is expected to be 56 697 t of copper cathode, 1 708 t of cobalt cathode and 25 364 t of zinc sulphate monohydrate.
The project has a minimum mine life of 23 years, with expected cash costs in the lowest quartile of world production.