Xstrata Approve Expansion of Chilean Copper Mine

Xstrata Copper announces its Board’s approval of an expansion to production and extension to the operating life of the Lomas Bayas open pit copper mine in northern Chile’s Antofagasta Region.

The $70 million expansion project will increase copper production capacity by 15%, from 65,000 tonnes a year to 75,000 tonnes a year of copper in cathode, and is planned to be commissioned in the third quarter of 2008. In addition to the construction workforce, the project will create employment opportunities for an additional 90 people once completed.

“This approval signals the successful integration of the development of the nearby Lomas II deposit into the existing processing operations, which will extend the operational life at Lomas Bayas from 2013 to 2020”, said Xstrata Copper Chief Executive Charlie Sartain.

The development of the Lomas II pit (formerly known as Fortuna de Cobre), just 3 kilometres from the current pit and processing facilities, is now planned to commence in 2010, with operations commencing in 2011. The project will ensure sustained copper production at Lomas Bayas at the expanded level of 75,000 tonnes per annum.
The environmental studies for both the expansion to 75,000 tonnes a year and the development of Lomas II deposit were approved by Chile’s Antofagasta Region environmental authorities Conama in December 2006.

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