Chinese mining group MMG Ltd estimated total capital costs of its Dugald River zinc-lead-silver mining project in Australia will hit AUD 1.49 billion(USD 1.57 billion)with production starting a year later than expected.
The company said that MMG has invested AUD 293 million in the project in northwest Queensland so far and needs about AUD 1.2 billion to produce its first shipment of concentrate in late 2015.
The Dugald River project,which was originally slated for start-up in 2014,is being developed to replace MMG's nearby Century zinc mine.
MMG expects Dugald River to produce concentrates containing about 200 000 t of zinc a year compared to the 500 000 tonne annual output of the Century mine,which is scheduled to run dry by around the middle of the decade unless fresh reserves can be found and exploited.
