ContractAwardedtoKvaernerE&C
Broken Hill Proprietary Co Ld
30 March 2000
TINTAYA OXIDE PROJECT ENGINEERING WORK PROGRESSES
The Broken Hill Proprietary Company Limited (BHP) today announced that it has
awarded the Engineering, Procurement and Construction Management (EPCM)
contract for its Tintaya Copper Oxide Project to Kvaerner E&C, a division of
Kvaerner USA.
The original feasibility study and 40 per cent of detailed engineering was
completed in 1998 by Bechtel. Since that time additional value-added studies
and geological work has been completed.
The Tintaya Copper Oxide Project forms part of BHP's efforts to deliver
value-creating growth opportunities from brownfields extensions. Completion of
an updated feasibility study is expected by July 2000.
Subject to Board approval, construction time for the Oxide Project will be
around 12 months. Annual production is expected to average 35 000 metric
tonnes of Grade 'A' cathode at a direct cash cost of less than 40 cents per
pound.
The Oxide Project will increase the total Tintaya production to more than 110
000 tonnes of copper per annum and will significantly reduce its integrated
unit cash costs.
Production of oxide is expected as early as the first half of 2002, with full
production forecast to be achieved within three months of commissioning.
The Tintaya Oxide Project is located close to the Tintaya Sulfide operation in
BHP's Altiplano copper/ gold district. BHP has assembled a land package of
more than 90 000 hectares, securing a major portion of this highly prospective
region.
A focused exploration program has identified over 10 targets over the past
three years. Definition drilling has proven up the following reserves within a
10 km radius of the Tintaya plantsite:
Antapaccay Cu/Au porphyry:
- Two mineralized bodies with an inferred geologic resource of 383 million
tonnes @ 0.89% Cu, 0.16 g/t Au (0.5% Cu cut-off)
- Recent technical studies have investigated the economics of building a
stand- alone concentrator with a capacity of either 31 000 tpd or 50 000 tpd
Coroccohuayco skarn:
- A skarn deposit with a mineral resource of 155 million tonnes @ 1.57% Cu,
0.16 g/t Au and 6.3 g/t Ag (0.55% Cu cut-off)
Ccatun Pucara:
- A skarn deposit located within one kilometre of Coroccohuayco with a mineral
resource of 24 million tonnes @ 1.44% Cu (0.55% Cu cut-off)
Drilling is planned for seven new targets over the next four months. These
targets are located within 10 kilometres of the existing Tintaya plant and
were defined on the basis of favorable geology supported by airborne and
ground geophysics.
All of the targets exist on BHP owned or controlled ground. In addition, local
and district exploration is in progress and more will be funded in coming
years.
BHP Tintaya was Peru's third largest copper operation in 1999, as well as the
country's sixth largest producer of gold. It presently processes more than
16 000 mtpd of skarn copper ores at an average grade of 1.6% and produces in
excess of 85 000 tonnes of copper contained in 290 000 metric tonnes of copper
concentrates per year.
Contact:
MEDIA RELATIONS: Mandy Frostick
Manager Media Relations - Melbourne
Ph: +61 3 9609 4157
Mob: +61 419 546 245
Michael Buzzard
Senior Media Relations Advisor - Melbourne
Ph: +61 3 9609 3709
Mob: +61 417 914 103
INVESTOR RELATIONS: Dr Robert Porter
Vice President Investor Relations - Melbourne
Ph: +61 3 9609 3540
Mob: +61 419 587 456
Latest directors dealings
- 19 hours ago Savannah Energy
- 20 hours ago Buccaneer Energy PLC
- 20 hours ago Savannah Energy
- 21 hours ago Carclo
- 21 hours ago Schroder Japan Growth Fund