Development at Chilean miner Antofagasta Minerals' 70% owned Antucoya copper project in northern region II has been temporarily suspended while management completes a review of the project's costs and the potential for increases.
Antofagasta Minerals CEO Diego Hernández said that "We remain concerned about the level of capital and operating costs in the industry. We believe Antucoya's decision to temporarily suspend and review the project reflects an appropriate and measured approach to addressing these concerns.”
All major construction contracts have been canceled accordingly, the company said.
In May, the company raised capex for the project to USD 1.7 billion from a previous estimate of USD 1.35 billion due to cost pressures.
Antucoya, which was expected to begin production in 2H14, was originally planned as a satellite deposit for the nearby Michilla operation. The now standalone operation has a planned mine life of more than 20 years. It is expected to produce an average of 80,000 tonne per year of copper cathodes from an open pit and heap leaching-SX-EW facilities.
With average grades of 0.35%, Antucoya would be one of the lowest-grade greenfield projects being developed in Chile.
Source:
http://www.steelguru.com/metals_news/Antofagasta_development_suspended_at_Chile/296371.html
