Xstrata PLC XTA Antapaccay dispatches first copper production

  Xstrata PLC (XTA) - Antapaccay dispatches first copper production

RNS Number : 0705S
Xstrata PLC
27 November 2012




Antapaccay dispatches first copper in concentrate production



Brisbane, 27 November 2012

Xstrata Copper's Antapaccay copper mine in southern Peru commenced  production 
of commercial grade copper  in concentrates at the  beginning of November  and 
has delivered its first  shipment to Matarani Port  for delivery to  customers 
worldwide.



Plant commissioning activities continue  as Antapaccay progressively ramps  up 
to the nameplate  processing capacity of  70,000 tonnes per  day in the  first 
half of 2013. The mine will produce an average of 160,000 tonnes of copper  in 
concentrate per annum, plus gold and silver by-products, in the initial  years 
of production. 



Antapaccay is a major copper operation with a mine life of more than 20 years,
including a new mine and  state-of-the-art concentrator facility. The mine  is 
located approximately  10 kilometres  from our  Tintaya open  pit mine,  where 
mining activities are scheduled to end in the coming months, and benefits from
Tintaya's existing administrative and logistics infrastructure and experienced
workforce.



On average, 4,250  direct jobs  were generated during  construction with  more 
than 6,500 people  employed at its  peak. 100% of  unskilled labour was  drawn 
from  the  surrounding  area   providing  extensive  training  and   promotion 
opportunities for local people.  The Antapaccay mine  will employ a  permanent 
workforce of around 1,400  people, with the  majority of workers  transferring 
from the  existing  Tintaya  mine  as  it  closes,  and  will  create  further 
opportunities for local employment.



Xstrata Copper Chief Executive Charlie Sartain said:



"I am  delighted  to  announce  that we  commenced  production  at  our  major 
Antapaccay project on schedule  and in line with  the original budget of  $1.5 
billion, a significant achievement for  a project undertaken through a  period 
of industry inflation and global economic uncertainty.



"Antapaccay is the culmination of a  strategy we initiated six years ago  when 
we acquired the Tintaya operation  in 2006. In this  short space of time,  we 
have added  substantial value  for  the company,  local communities  and  Peru 
through the successful management of the  Tintaya mine; the confirmation of  a 
further  1.3  billion  tonnes  of  mineral  resources  in  the  district;  the 
completion  of  conceptual   and  feasibility  studies   for  the   Antapaccay 
development; and now with the construction of a major, long-life mine.



"This strategy has resulted in important reinvestment in the Cusco region  and 
Espinar province  where our  operations were  due to  close in  2012 with  the 
completion of the Tintaya open pit. Antapaccay extends and increases Tintaya's
contribution to  important  local infrastructure,  ongoing  opportunities  for 
local suppliers, skills training and  enterprise development, royalty and  tax 
payments and substantial voluntary annual investment in community projects and
partnerships."



The Antapaccay deposit has recently been expanded by 30% to an estimated total
Mineral Resource of over
1 billion tonnes at  a grade of  0.49% copper using a  cut-off grade of  0.15% 
copper, including gold and silver by-products. The Mineral Resource contains 5
million tonnes of copper metal.



The highly attractive Tintaya geological district also hosts the Coroccohuayco
deposit, with a current Mineral Resource of  324 million tonnes at a grade  of 
0.93% copper, and a number of exploration targets within our extensive mineral
tenements.



Photos, videos and further information about our Tintaya Antapaccay operations
in Peru are available on the web-based version of this press release on
Xstrata Copper's website: www.xstratacopper.com



End

Neither the content  of the  company's website nor  the content  of any  other 
website accessible from  hyperlinks on the  company's website is  incorporated 
into, or forms part of, this announcement

Xstrata Copper contacts:



Emily Russell                         Domingo Drago
Telephone +56 2 478 2204              Telephone +51 1372 2233
Mobile    +56 9 9443 3571             Mobile    +51 989259180
Email     erussell@xstratacopper.com  Email     ddrago@xstratacopper.com.pe

www.xstratacopper.com



Notes to editors

About Xstrata plc

We are a major  producer of a  range of vital  commodities used in  everything 
from constructing  buildings and  delivering  electricity, to  developing  jet 
engines and mobile  phones. We are  one of  the top five  global producers  of 
copper, thermal and metallurgical  coal, ferrochrome, zinc  and nickel and  we 
also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in  2002 and  headquartered  in Switzerland,  we  operate in  over  20 
countries and  employ over  70,000  people at  more  than 100  operations  and 
projects around the world. We work in a responsible and sustainable way,  with 
an entrepreneurial spirit  and dynamic approach.  For more information,  visit 
www.xstrata.com

About Xstrata Copper

We arethe  fourth largest  global  copper producer  and  one of  the  world's 
largest producers  of smelter,  refined and  recycled copper,  including  from 
third party  materials. The  copper  we produce  is  essential to  our  modern 
society, being used extensively in electronic, consumer and building products,
and with  its  use  in  green-technologies,  anti-microbial  applications  and 
ability to  be  recycled,  it is  playing  a  vital role  in  our  sustainable 
future.



Headquartered in Brisbane, Australia, we have operations and projects in eight
countries and employ  over 20,000  people. We play  an essential  role in  the 
communities  in  which  we  live  and  work,  by  providing  jobs,   training, 
infrastructure, income for suppliers and  support for social development.  For 
more information, visit www.xstratacopper.com

About Antapaccay

Our Antapaccay  open pit  mine  and processing  facilities are  located  4,100 
metres above sea level in the  Yauri district of Espinar Province in  southern 
Peru's Cusco Region  approximately 10 kilometres  from our Tintaya  operation. 
Since acquiring  Antapaccay in  2006, we  have rapidly  advanced the  project 
through conceptual and feasibility studies to full construction. Antapaccay is
a major new copper operation with a mine  life of more than 20 years. It  will 
initially produce an average  of 160,000 tonnes of  copper in concentrate  per 
annum, plus gold and silver by-product credits.



During construction of Antapaccay, we provided over 90,000 hours in  technical 
and safety training allowing us to create 10,000 jobs, employ over 3,000 local
people on project construction  and related works  and promote local  industry 
development. The Antapaccay mine will  employ a permanent workforce of  around 
1,400 people,  with the  majority of  workers transferring  from the  existing 
Tintaya mine as  it closes, and  will create further  opportunities for  local 
employment. All unskilled labour will be drawn from the local community.



Mining activities at Tintaya are scheduled  to cease in the coming months.  We 
acquired our Tintaya  operation for $750  million from BHP  Billiton in  2006, 
including the Antapaccay and Coroccohuayco projects.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCGLBDBSDDBGDR -0- Nov/27/2012 07:01 GMT
 
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