Xstrata Approves US$1.47B Antapaccay Copper Project In Peru

MELBOURNE, Jul 07, 2010 (Dow Jones Commodities News via Comtex) -- Xstrata Plc (XTA.LN) said Wednesday it has ticked off on an investment of US$1.47 billion in the Antapaccay copper project in Peru after wining environmental approval for the project.

The mine is slated to come into production in the second half of 2012 as the nearby Tintaya operation reaches the end of its life, with construction to begin in the third quarter of 2010.

Xstrata said the project will see annual copper production from Tintaya-Antapaccay rise by 60% to 160,000 metric tons and is part of a drive by the company's copper division to increase overall volumes by 50% by 2014 while reducing costs.

"The construction of the Antapaccay project marks the next step in Xstrata Copper's strategy to develop its assets in southern Peru, including the development of the world-class Las Bambas project, into a major new copper-producing region," Xstrata Chief Executive Mick Davis said in a statement.