PERTH (miningweekly.com) – Dual-listed copper developer Metminco is moving to consolidate its South American operations, restructuring its corporate structure in the region and hunting for parties interested in its Chilean assets.

Metminco told shareholders on Wednesday that the company’s focus remained firmly on its Los Calatos copper/molybdenum project, in southern Peru, adding that discussions regarding a strategic investor in the project continued to progress.

“The board of directors remains firmly focused on advancing Los Calatos, recognising the need for a financially strong strategic partner in the current market environment. To this end, our strategic process is ongoing, and we remain in discussions with suitable partners,” said MD William Howe.

However, Metminco would consolidate its South American offices into a single technical and administrative base, closing down its Chilean office and centralising the corporate management team, including the MD, to the existing offices in Sydney, Australia.

“As foreshadowed earlier this year, our project-related expenditure has declined with the completion of the Los Calatos scoping study and, given current global market conditions, we have decided to consolidate our two offices in South America into our Lima office,” said Howe.

“The restructuring presents an opportunity to significantly reduce costs and align expenditure to current equity market conditions, extending our capability to fund the business well into 2015.”

Meanwhile, Howe noted that in Chile, Metminco was continuing with the final metallurgical testwork for its Mollacas copper-leach project.

On completion of the work, the company would consider its options for the project, including self development, the introduction of a joint partner, or an outright sale.

Metminco would also seek to joint venture or divest of its other Chilean projects.

“We are strong supporters of our key assets in Peru and Chile. We have scale at Los Calatos, and the opportunity to generate medium-term cash flows at the smaller Mollacas copper-leach project, which we continue to investigate further,” said Howe.

“In terms of our early-stage projects in Chile, we will seek to secure joint venture partners, or look to realise the prospective value of these projects,” he added.

Apart from the Mollacas project, which has a mineral resource of 34.3-million tonnes, Metminco also owns the Vallecillo project, which hosts a mineral resource of 8.9-million tonnes, as well as a number of early-stage exploration projects.