Name of the Project
Quellaveco copper project.
Location
Moquegua region, southern Peru.
Project Owner/s
The project is 60%-owned by Anglo American, with Mitsubishi Corporation a 40% strategic partner.
Anglo American’s marketing division will market the copper concentrate.
Project Description
Quellaveco is one of the world’s biggest and most attractive undeveloped copper orebodies. Ore reserves of 1.3-billion tonnes containing 7.5-million tonnes of copper provides Quellaveco with a reserve life of 30 years, with potential for further extension, given its estimated additional mineral resources of 1.6-billion tonnes containing six-million tonnes of copper.
Anglo American aims to expand the mine beyond its current 30-year reserve life to 36 years, and increase throughput above the initial capacity of 127 500 t/d to produce an average of 300 000 t/y over its first ten years of operation at a cash cost of $1.05/lb of copper.
The project involves the building of a new 60-million-cubic-metre dam in the High Mountain region, and a 95 km overland gravity-fed pipeline to deliver water to the Quellaveco mine area, where an opencast mine is being developed, along with a primary crusher, overland conveyors and truck maintenance workshops, for which platforms are being completed.
During the first ten years of full production, Quellaveco is expected to produce an estimated 300 000 t/y of copper at a cash cost of $1.05/lb of copper.
Potential Job Creation
At the peak of construction, about 12 000 people are expected to be employed and 2 500 people will be employed permanently once the mine is in production.
Net Present Value/Internal Rate of Return
The project has an after-tax internal rate of return of more than 15%, with a four-year payback from first production in 2022.
Capital Expenditure
The project has an expected capital cost of between $5-billion and $5.3-billion, and will be funded on an attributable basis – 60% by Anglo American and 40% by Mitsubishi.
Mitsubishi will prefund the first $500-million of Anglo American’s share of the capital expenditure.
Planned Start/End Date
The project will ramp up to full production in 2023.
Latest Developments
The first production of copper concentrate was achieved at Quellaveco on August 23. This marks the testing of the processing plant using ore and the ramping up of mining activities to demonstrate readiness for operations.
Key Contracts, Suppliers and Consultant
None stated.
Contact Details for Project Information
Anglo American investor relations Paul Galloway, tel +44 20 7968 8718 or email paul.galloway@angloamerican.com.