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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
HMRC confirms crypto ETN ISA rulesWith crypto ETNs now technically available for UK retail investors, HMRC has confirmed they can be held in an ISA – but there’s a complication
-
Pensioners targeted in fine wine scams – the tactics to watch forWine has emerged as the latest lure in investment fraud, with pensioners being specifically targeted by scammers
