Lomas Bayas

Xstrata Copper announced Xstrata plc Board approval of a $293 million investment to increase the life of its Lomas Bayas mine in Chile by eight years, through the development of the Fortuna del Cobre satellite ore deposit, three kilometres away from the existing operation. The project, known as Lomas Bayas II, will extend the Lomas Bayas mine life to 2020 and sustain production capacity at the recently expanded rate of 75,000 tonnes per year of copper cathode.

Ehe Lomas Bayas expansion project was commissioned within the approved budget of $70 million in November 2008. Also reported that The timing of a commitment to the Lomas II project, which would extend the mine life to 2020, is currently under review. In addtion, geological test-work has identified sulphide mineralisation directly beneath the existing mining operation The Altonorte phase IV expansion to 1.2 million tonnes per annum of smelter feed was commissioned in October, comprising the construction of the new no. 1 acid plant that will increase annual acid capacity to 1.1 million tonnes. Molybdenum roasting operations were suspended in October 2008 due to insufficient feedstock and poor market conditions following the global economic downturn

Reported that the $70 millione xpansion project, designed to increase production by 15% to 75,000 tonnes per annum and extend the mine life to 2020 is on track for commissioning during the second half of this year. Earthquake damage to the no. 2 and 3 acid plants at Altonorte decreased anode production by 10% and sulphuric acid production was also affected. The resulting interruptions to sulphuric acid supply and earthquake damage to the crushing and conveying systems affected Lomas Bayas, decreasing cathode production by 13%.