Xstrata Approves $4.2B Las Bambas, Peru Copper Project

SYDNEY, Aug 03, 2010 (Dow Jones Commodities News via Comtex) -- Xstrata PLC (XTA.LN) has given the go-ahead for the development of the Las Bambas copper mine in Peru, with production expected from the second quarter of 2014.

The mine is tipped to produce 400,000 metric tons a year of copper in concentrate, alongside "significant" quantities of gold, silver and molybdenum, the company said in a statement.

Initial project spending would total US$4.2 billion, with construction expected to start in the third quarter of 2011 if regulatory approvals are granted, the company said.

Xstrata tips the mine's life at 18 years.

Charlie Sartain, Xstrata Copper chief executive, said the approval "reflects our confidence in Peru's longstanding fiscal and legal stability and is an important milestone in our strategy to progressively increase total annual copper production by 50% to almost 1.5 million tons by the end of 2014."