Cerro Verde Sulfide Project Ships First Copper Ore to Japan

Sumitomo Metal Mining and Sumitomo Corporation announced on Tuesday Cerro Verde copper mine in Peru, in which they have total 21% interest, started production of copper concentrate from the primary sulfide project. The mine shipped the first vessel of concentrate with around 9,500 tonnes to Sumitomo Metal Mining’s Toyo plant in Ehime arriving in early February. The mine, which has around 270,000 tonnes of annual output capacity in pure copper, will reach full capacity operation in first half of 2007 after the test running for beneficiation. The mine produces around 90,000 tonnes per year of electrolytic copper through SX/EW process. The new concentrate production project plans around 180,000 tonnes of pure copper output. Sumitomo Metal Mining and Sumitomo Corp. acquired 21% interest in the project in 2005 and got right to secure 50% of the produced concentrate for 10 years. They developed the primary sulfide project for around SU$ 850 million. The project plans to produce annual 656,000 tonnes of copper concentrate with 28% or around 180,000 tonnes of copper and 7,150 tonnes of molybdenum concentrate. The project will start production of molybdenum after the completion of recovery plant construction.