Falconbridge Expects El Morro Copper Project Online in 2010

Strategic Insights -

Canadian mining company Falconbridge Ltd. announced plans to bring the $1.2 billion El Morro copper project in northern Chile online in 2010. The project, currently in the pre-feasibility stage, is expected to produce 145,000 metric tons of copper and 325,000 ounces of gold per year. Falconbridge owns and operates the Lomas Bayas copper mine in Chile and has a 50% interest in El Morro.

Falconbridge's general manager, Marcelo Jo, also discussed the company's plans for the Lomas Bayas mine, which currently produces 63,000 tons of copper per year. Jo mentioned that the company is considering an expansion of output at Lomas Bayas, but would have to postpone bringing its nearby La Fortuna deposit online if they opt for this expansion. Additionally, Falconbridge's El Pachon deposit in Argentina, which is currently in the feasibility stage, is expected to come online in 2011 and produce 245,000 tons of copper per year, as well as molybdenum.

Key Takeaways:

  • Falconbridge Ltd. expects to bring the $1.2 billion El Morro copper project in Chile online in 2010, producing 145,000 metric tons of copper and 325,000 ounces of gold per year.
  • The project is currently in the pre-feasibility stage and has a 15-year lifespan.
  • Falconbridge is considering an expansion of output at the Lomas Bayas mine, but would have to postpone bringing the nearby La Fortuna deposit online.
  • The El Pachon deposit in Argentina, which is currently in the feasibility stage, is expected to come online in 2011 and produce 245,000 tons of copper per year, as well as molybdenum.
  • Falconbridge holds various stakes in other mines and projects, including a 44% stake in the Collahuasi copper mine in Chile and a 34% stake in Peru's Antamina.

Statistics:

  • $1.2 billion: The estimated cost of the El Morro copper project.
  • 145,000 metric tons/year: The expected production of copper from the El Morro project.
  • 325,000 ounces/year: The expected production of gold from the El Morro project.
  • 63,000 tons/year: The current production of copper at the Lomas Bayas mine.
  • 2010: The expected year the El Morro project will come online.
  • 2011: The expected year the El Pachon deposit in Argentina will come online.
  • 245,000 tons/year: The expected production of copper from the El Pachon deposit.
  • 15 years: The expected lifespan of the El Morro project.

Sources:

  • Dow Jones Commodities News via Comtex, May 25, 2006
  • Carolina Pica, Dow Jones Newswires; 56-2-460 8544; carolina.pica@dowjones.com