Peru's Antamina Mine expansion to up 2012 output

Peru's Antamina Mine

Peruvian base metals miner Compania Minera Antamina expects to increase production next year following the completion of a large-scale expansion at its mine, company Chief Executive Abraham Chahuan told business newspaper Gestion.

In an interview published Monday, Chahuan said the US$1.3 billion expansion of the mine is "practically in the final stage."

"We could be starting the new equipment by the end of the year, and we expect that our capacity will increase in 2012," he noted.

Antamina the biggest producer of copper in Peru, with output of 1.2 million metric tons of copper concentrate a year. It is also the largest producer of zinc, with 600,000 tons a year of concentrates, he said.

Chahuan also told Gestion that Antamina is the second-largest producer of silver and the largest producer of molybdenum in Peru.

Chahuan said the new windfall taxes placed by the Peruvian government in the mining sector have put the mining industry at the limit of what can be placed before competitiveness declines.

The owners of Antamina are BHP Billiton, with a 33.75% stake; Xstrata Copper with another 33.75%; Teck Cominco Corp. with 22.5% and Mitsubishi Corp. with 10%.

The mine, located in the central Andes Mountains region, started operations in 2001. (Andina)