Pan Pacific Copper to Get Copper Interest in Peru

Pan Pacific Copper, which is joint venture of Nippon Mining & Metals and Mitsui Mining & Smelting, announced on Wednesday the firm purchases interest in Quechua copper deposit in southern Peru from Mitsui Mining and Smelting for US$ 40 million. The firm invests US$ 450 million for feasibility study and construction of production facilities. The firm tries to launch annual 60,000 tonnes of copper production in late 2012. The deposit is located in highland with 4,000-4,400 meters altitude and around 700 kilometers southeast of Lima. The deposit has 5.732 million square meters and around 260 million tonnes of resource. The deposit with ore containing 0.61% of copper has around 1.6 million tonnes of copper. Mitsui Mining & Smelting has kept the interest for 30 years. The deposit development project can access infrastructure including port, road and power plant. Pan Pacific Copper conducts feasibility study through mid-2010 for around US$ 50 million. The firm plans to build production facilities for around US$ 400 million starting operation with 210,000 tonnes of annual copper concentrate production in late 2012. The firm expects the operation keeps 16 years. Pan Pacific Copper issues new share for the parent firms to purchase the interest while the firm keeps studying the finance for the project. The firm already started feasibility study at Caserones copper deposit in Chile. The firm keeps seeking new resources through acquiring interests and exploration.