China's Minmetals Resources Copper Co is expected to start construction of its 100,000 mt/year core copper cathode project at Hengyang city in Hunan province by July this year, according to a report by the Hunan government posted on its website Friday.
Construction of the concentrate warehouse and dispensing line began on May 1, and work on the core copper cathode project is scheduled to start by July.
The Yuan 360 million ($58 million) project includes integrated metal recycling for copper and gold, with a capacity of 550,000 mt/year.
Once fully started up by end-2015, the copper cathode project is expected to generate an annual revenue of Yuan 6 billion, and tax revenue of Yuan 150 million.
The report added that MMG's recent purchase of Glencore Xstrata's Las Bambas copper mine in Peru will provide adequate feedstock for its copper project in Hunan.
Glencore Xstrata has agreed in mid-April to sell its entire stake in the the Las Bambas project for $5.85 billion to a Chinese consortium. This will see MMG hold a 62.5% stake in Las Bambas.
Elion Holdings, under Guoxin International Investment, will own 22.5% interest and CITIC Group's wholly owned subsidiary CITIC Metals, the other 15% stake.
