Pan Pacific Copper Co. to Develop Chilean Copper-Molybdenum Mine with Mitsui & Co.

Japanese miner Pan Pacific Copper Co. (PPC) has decided to start developing a Chilean copper-molybdenum mine in March with Mitsui & Co. The venture, a joint effort between Nippon Mining & Metals Co. and Mitsui Mining & Smelting Co., plans to begin building production facilities at the Caserones mine in northern Chile. The operation is expected to produce copper concentrate with 30% copper content in 2013, supplying all output to PPC group smelters. This development aims to satisfy 50% of PPC's copper concentrate needs, up from the current 20%.

Key Takeaways:

• Pan Pacific Copper Co. has chosen Mitsui & Co. as its partner to develop a Chilean copper-molybdenum mine at Caserones in northern Chile.
• The mine's production is expected to begin in 2013, with an initial investment of US$2 billion (approximately 180 billion yen).
• The Japanese Oil, Gas and Metals National Corp. has provided a 4.8 billion yen loan for the project.
• The mining operation is expected to generate 30-40 billion yen in pretax profit annually.
• Pan Pacific Copper Co. plans to address declining earnings at its smelting operations by developing more copper mines in Peru and other locations.
• Mitsui & Co. will hold a 25% interest in the Caserones mine, acquired through a US$135 million investment.
• The addition of the Caserones mine will enable PPC to meet 50% of its copper concentrate needs, a significant increase from the current 20%.

Statistics:

• Initial investment for the Chilean mine: US$2 billion (180 billion yen)
• Percentage of copper content in production: 30%
• Planned production expansion: 50% increase in meeting copper concentrate needs
• Mitsui & Co.'s investment in the Caserones mine: US$135 million
• Pretax profit expected from the mining operation: 30-40 billion yen annually
• Japan Oil, Gas and Metals National Corp.'s loan: 4.8 billion yen

Sources:

• Tokyo, March 1 Asia Pulse
• Nikkei