Xstrata confirms estimate for Las Bambas

Xstrata said Friday that the definitive estimate for the Las Bambas project in southern Peru is 5.2bn dollars.

This has reconfirmed the updated estimate reported in August 2012 and the project's status as a world class, Tier 1 copper asset that will deliver "substantial value", it said.

The company said the project delivers robust financials, earning Xstrata's cost of capital at a life of mine flat copper price of $1.89 per pound.

Xstrata Copper Chief Executive, Charlie Sartain, said: "Las Bambas represents the next major stage in Xstrata Copper's Peruvian development plans that will result in combined annual production levels in the country of around 700,000 tonnes of high margin copper from 2015.

"Las Bambas will benefit from synergies and the experience derived from our Antapaccay project development and operations and will consolidate Xstrata Copper's position as a leading producer of copper concentrates and one of the world's largest copper producers."

The share price edged 0.13% higher to 1,173p in opening trading.

NR