LONDON (Alliance News) - Metminco Ltd on Monday said it has received the results of a mining study conducted on the Los Calatos project in southern Peru which have significantly improved the economics of the project.
The study was conducted by RungePincockMinarco and builds on the preliminary study results released at the end of July. The new results have "significantly improved economics for the project," it said in a statement.
The net present value of the project now stands at around USD447.0 million, which is 57% higher than the preliminary results suggested in July.
Los Calatos will produce an average of 50,000 tonnes of copper in concentrate per year for 22 years, producing a total of 1.1 million tonnes of concentrate over the life-of-mine. The mine is expected to generate around USD3.82 billion in earnings before interest, tax, depreciation and amortisation over its lifetime.
Metminco will spend around USD655.0 million to get the project into production, which will take between 18 to 24 months to construct.
"The mining study completed by RPM provides an excellent building block for the potential development of the Los Calatos project. This study clearly demonstrates that there are a number of options available for the development of Los Calatos into a low cost, long life mine," said Managing Director William Howe.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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