Pan Pacific Copper Starts FS to Develop Quechua Cu Mine in Peru

Pan Pacific Copper announced on Monday the firm starts feasibility study to develop Quechua copper deposit of Peru. The firm, which is joint venture of Nippon Mining & Metals and Mitsui Mining & Smelting, got evaluation report indicating economically viable for the project after pre-feasibility study since January 2009. The firm makes final development plan through the FS from December to January 2011 for around 3 billion yen.

The firm conducts additional drilling to find final resource estimation. The firm also conducts treatment facility test, facility design, application for environmental approval, calculation of development cost and estimation for potential molybdenum recovery. After the final decision for the project, the firm will start construction in June 2011 starting operation in August 2014.

The project is to produce around 270,000 tonnes of copper concentrate or around 76,000 tonnes of copper annually for 17 years. Pan Pacific Copper uses the concentrate at Saganoseki smelter and refinery and Tamano smelter of Hibi Kyodo Smelting.

Pan Pacific Copper will start development of Caserones copper deposit of Chile starting operation in 2013. The firm also purchases concentrate from Chilean mines with the interests including Los Pelambres, Escondida and Collahuasi. The firm expects the procurement rate from mines with own interests increases from current 18% to 50% after start of Caserones and Quechua mines.