xstrata copper may increase investment

This has to be good for IRN. What's people's views?

http://business.inquirer.net/money/breakingnews/view_article.php?article_id=69617

Xstrata Copper may increase investment in Tampakan to $2B

Xinhua Financial News Service
Last updated 04:31pm (Mla time) 06/05/2007


MANILA, Philippines -- Xstrata Copper chief executive Charlie Sartain said the company might increase its investments in the Tampakan copper project in southern Philippines to $2 billion from $1.4 billion.

"We are currently assessing our costs to determine the adjustments that can be made with regards to developing Tampakan," Sartain told reporters on the sidelines of an international mining conference here.

Sartain said the extended pre-feasibility studies for Tampakan are expected to be completed by next year. "We are scaling up the intensity of our activities so we could accelerate our work program."

Tampakan is the largest development project in Xstrata Copper's portfolio. Other projects include Frieda River in Papua New Guinea, El Morro in Chile, El Pachon in Argentina, and Las Bambas in Peru.

"Each of these projects has the potential to produce between 150,000 tons and 300,000 tons a year of copper. It provides us the opportunity to double our production capacity by one million tons annually."

Tampakan is considered one of the largest untapped copper mineral resources in Southeast Asia. It is estimated to contain 11.6 million tons of copper and 14.6 million ounces of gold.

Sartain said that with the completion of the pre-feasibility study next year, the company hopes to proceed smoothly with the final feasibility work that will entail fine-tuning of capital requirements and ore reserves. Commercial production may start by 2012.

"We are quite confident about the potential of Tampakan, although it is too early to speculate about how much production from the mines will contribute to our revenue in the coming years," said Sartain.

Xstrata Copper exercised its option to acquire 62.5 percent of the controlling interest in Tampakan last year and assumed management control last March through its Philippine affiliate, Sagittarius Mines Inc.

Xstrata Copper is one the five commodity business units of Xstrata Plc., the fifth largest mining company in the world.


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