Xstrata expands Chilean copper mine

Xstrata Copper is planning a major expansion of the Collahuasi mine in Chile, which currently produces 440,000 tonnes of copper in concentrate and cathodes, per year.

The company expects output at the mine to double by 2014, to one million tonnes a year, making it the world’s second-largest copper mine.

Collahuasi will come second only to the Escondida mine, which is also located in Chile and has an annual output of around 1.3 million tonnes.

Xstrata holds a 44% share in Collahuasi, which it acquired in 2006 as part of its purchase of Falconbridge, the Canadian miner.

The expansion programme is a joint venture with Anglo American and the first phase is scheduled for completion in 2010.

The project involves an investment of approximately $600 million in fixed-plant construction costs. This will introduce more efficient methods of production and impact on output from 2008.

Collahuasi is located in a mountainous area which is also one of the driest regions in the world.
However, Xstrata and its partner have already located the water supply needed for the first phase of the expansion.

The companies are confident that further water sources can be found and that the expansion programme will not have to resort to building an expensive desalination plant.