Caserones Copper Project to Cost Additional US$ 1B

Mitsui & Co. and Pan Pacific Copper (PPC), Japan’s largest copper smelter jointly operated by JX Nippon Mining & Smelting and Mitsui Mining & Smelting, announced on November 30 their investment for Caserones copper mine development project in Chile is forecasted to increase by 50% from previously planned. The capex is presently estimated to accumulate approximately US$ 3 billion from previously planned US$ 2 billion. Chilean peso has currently strengthened against US dollar along with copper market price upsurge. Costs for construction materials and works are increasing. Additionally the construction plan was partially revised.

The additional cost will be funded to Minera Lumina Copper Chile, the project leading company 75% controlled by PPC and 25% by Mitsui, from the parent companies. The project construction has progressed smoothly. Detailed designs of the project, construction of the campground facility and access roads have almost completed. Groundwork for the facilities has advanced, too. The project is expected to enter commercial operation in 2013 as scheduled.