Anglo-Swiss miner Xstrata has reported "significant increases" to its total mineral resources at the Las Bambas and Corroccohuayco projects in southern Peru and at El Pachn in Argentina.
Over the past year, Xstrata's total contained copper in total mineral resources has grown by 10%, equivalent to 9m tonnes, to 97m tonnes.
The mineral resource estimate at Las Bambas has now been upped by 10% to 1.710bn tonnes. At Coroccohuayco, an earlier stage project, further drilling has identified resources closer to the surface and as such, the new mineral resource forecast is 250% higher than before at 324m tonnes. Meanwhile, the firm has raised its mineral resource estimate at El Pachn by 53% to 2.740bn tonnes.
Subscribe to 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
Chief executive of Xstrata's copper division Charlie Sartain said: "Our significant and expanding mineral resource base in South America has laid the foundations for our approved organic growth programme that will increase copper production by more than 50% to 1.5 million tonnes of copper per year by the end of 2014 and offers great potential for further substantial copper production growth in the region."
Meanwhile in a separate statement, the firm said that initial underground mine production has successfully commenced at the firm's Ernest Henry Mining operation in north-west Queensland.
Xstrata is hailing the move as a "major milestone" in the progression of its AU$589m project to extend its Ernest Henry operations to at least 2024.
During the first phase of underground operations, around 25,000 tonnes of copper and 35,000 ounces of gold in concentrate will be produced a year. Following the commissioning of the underground shaft in 2013, production will ramp up to six million tonnes per annum producing 50,000 tonnes of copper and 70,000 ounces of gold in concentrate, the firm said.
NR
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
