Canadian Mining Journal

News

COPPER FEASIBILITY – Petaquilla cost pegged at $1.7B

PANAMA - It takes big money to develop big copper projects in Latin America. The Petaquilla copper project is no ex...



PANAMA – It takes big money to develop big copper projects in Latin America. The Petaquilla copper project is no exception. Partners INMET MINING (48%) of Toronto, TECK COMINCO (operator and earning 26%) of Vancouver, and MINERA PETAQUILLA (to hold remaining 26%) have updated the feasibility study for the project, coming up with a construction and working capital cost of US$1.7 billion.

The Petaquilla property is located 120 km west of Panama City. AMEC AMERICAS based the update on resources of 986.0 million tonnes grading 0.5% Cu, 0.01% Mo and 0.09 g/t Au. That would support open pit mining and a 120,000-t/d concentrator for 23 years. Total costs to produce a pound of copper are estimated to be US$1.06. Metal production over the life of the project would be 4.45 million tonnes of copper, 59,500 tonnes of molybdenum and 1.63 million oz of gold.

The capital cost estimate includes: US$301 million to develop an open pit mine; US$349 million to build a mill; US$143 million to be spent on site and services; US$214 million for the port and power plant; US$227 million for general construction costs; US$92 million for the EPCM contract; and US$126 million for the owners’ costs. In addition, US$140 million is planned for contingencies, US$47 million for escalation and US$69 million for working capital. Beyond the initial US$1.7 billion price tag, sustaining capital is estimated at US$437 million over the life of the mine.

Teck Cominco, Inmet and Petaquilla are in discussions with a view to formulating a strategy for the further advancement of the Petaquilla copper project. The full revision and update prepared by AMEC will be available at www.inmetmining.com and www.petaquilla.com.


Print this page

Related Posts



Have your say:

Your email address will not be published. Required fields are marked *

*