Jun 23 2004
Xstrata Copper has approved the development of the Northern 3500 Underground copper orebody at Mount Isa in north west Queensland, Australia, at an expected capital cost of AUD36 million (USD24.8 million). The project will provide an additional high grade mining zone in the Enterprise underground copper mine, enabling the Mine to maintain its rated capacity of 3.5 Mtpa and improving the utilisation of the existing hoisting and concentrator capacity.
Capital work on the project will commence in the second half of this year, with initial production scheduled to commence in 2006. Current plans indicate that the mining block will contribute a supplementary 5.27 Mt of copper at a grade of 4.52%, or 240,000 tonnes of contained copper metal, over the next 11 years.
Mount Isa's Enterprise Mine is Australia's deepest mine and has been in commercial production since 1 July 2000. It has an internal shaft reaching a depth of 1800 metres and has a grade of 3.7% copper.
Xstrata Copper also announces the approval of an AUD7.2 million (USD 5.0m) leaching project to recover around 2,500 tonnes per annum of additional copper from the electrostatic precipitator dust in the Mount Isa copper smelter. In addition, the Company has launched a feasibility study into an AUD29 million (USD20 million) electric settling furnace project to improve recoveries from the copper smelter by a further 2%. Pre-feasibility work has already been completed with encouraging findings, and the feasibility study outcome is expected by the end of 2004.
Commenting on the announcements, Charlie Sartain, Chief Executive Xstrata Copper, said "I am delighted that we have been able to approve these capital investments in our copper business at Mount Isa. Both the mine and smelter projects demonstrate a determination by the Isa management to implement capital efficient projects which will improve the overall capital productivity of our fixed assets and add further value to our north Queensland copper businesses. The ongoing transformation of these operations is delivering significant and sustainable improvements that will secure their future.
"Xstrata's decision to invest in the Mount Isa copper business underscores the Company's commitment to the future development of Queensland's mineral resources," he said.
For more information on copper, click here.