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Feasibility study launched to examine Molybdenum Expansion Project at Altonorte
Antofagasta, 26 November 2007
Xstrata Copper's North Chile Division announces the commencement of feasibility studies on an expansion to more than double molybdenum processing capacity at its Altonorte metallurgical facility.
The project's environmental impact study will be submitted to Chile's environmental authorities for approval in early 2008.
Subject to environmental approvals and a positive feasibility study, construction is expected to start in the second half of 2008 with commercial production commencing in the second half of 2009.
Initial estimates indicate an investment of approximately US$40 million will be required to refurbish a second molybdenum roaster at Altonorte that is currently idle and to construct a Brenda molybdenum leaching plant.
The two projects would increase molybdenum processing capacity at Altonorte from the current 12,000 tonnes per annum to 28,000 tonnes per annum.
"This project forms part of North Chile Division's strategy to transform Altonorte into a world class metallurgical facility that meets the highest environmental standards and offers a wide diversity of products," said North Chile Division Chief Operating Officer (COO) Jon Evans.
In June 2007, Altonorte began construction of an expansion to increase copper concentrate processing capacity by over 30% to 1.2 million tonnes and sulphuric acid production to 1.1 million tonnes per annum from the first quarter of 2009. This expansion will also increase Altonorte's sulphur emission capture to 95.5%.
Altonorte is also implementing a series of environmental upgrade projects that will require additional investment of US$28 million, including further measures to capture emissions and a dust treatment plant.
Ends
Xstrata contacts
Emily Russell
Manager, Corporate Communications, Xstrata Copper
Telephone: +56 2 478 2204
Mobile: +56 9 8528 1650
Email: erussell@xstratacopper.cl
Claire Divver
General Manager, Corporate Affairs, Xstrata
Telephone: +44 20 7968 2871
Mobile: +44 7785 964340
Email: cdivver@xstrata.com
Notes to editors
ABOUT NORTH CHILE DIVISION
Xstrata Copper's North Chile Division is based out of the city of Antofagasta and manages the nearby Altonorte custom metallurgical facility and the Lomas Bayas mining operation, 120 kilometres east of the city of Antofagasta. It also administers Xstrata Copper's 44% share in the Collahuasi mine in northern Chile's Region I.
Altonorte produced 282,000 tonnes of copper anode and 9 million pounds of molybdenum oxide in 2006.
ABOUT XSTRATA COPPER
Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its operations and projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea. Its operations are administered by five separate divisions, based close to the mining operations, namely the North Queensland, Alumbrera, North Chile, Southern Peru and Canada divisions. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.
Xstrata Copper is the fourth largest global copper producer with annual managed production of over one million tonnes.
ABOUT XSTRATA PLC
Xstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata’s businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with additional exposures to platinum group metals, gold, cobalt, lead and silver, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group's operations and projects span 18 countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, New Caledonia, Norway, Papua New Guinea, Peru, the Philippines, South Africa, Spain, Tanzania, the USA and the UK. Xstrata employs approximately 50,000 people, including contractors.