Codelco decided to develop an open pit project to extend life of Salvador
The copper management informed workers that they will advance in the initiative of Rajo Inca, above the San Antonio Oxides option, to continue operating the site for at least 15 years
Codelco’s administration, led by Thomas Keller, already plotting the future of its least profitable division, Salvador.
After several analyzes to assess costs and benefits, the state company executive staff decided to push the Rajo Inca Project, which transforms the current underground mine operation located in the Atacama Region in an open pit and the currently displaying Chuquicamata.
The last presentation to investors made by Codelco included in the schedule of major projects to be developed during this decade, the startup of Inca Rajo by 2019.
That decision is already known by the workers, who were informed of the decision earlier this month by the site General Manager, Armando Olavarria.
On that occasion, the executive explained that the future of Salvador in the medium term is linked to Rajo Inca. Thus, in order not to lose competitiveness in the division, it was decided to implement a transition plan that provides for greater exploitation of deposits as Rajo Damiana Mine (is adjacent to Inca Underground), while building the new open pit mine.
Codelco’s decision leaves on the road another project that was studying the corporation to extend the life of Salvador: San Antonio Oxides. The latter had been removed from the investment portfolio of the state company due to high energy costs and envisaged an investment of U.S. $ 1,000 million.
According to sources close to the copper, studies commissioned to assess the costs of development of both projects yielded results in favor of the new open pit mine which aims to be build.
In addition, the initiative will allow Codelco to extend in at least 15 years life less profitable division of the state company, which has come to reach total production costs of around U.S. $ 3.5 per pound.
Also, a possible closure of the site is discarded, topic that has been evaluated on several occasions within the corporation.
As for the amount of investment that would involve Rajo Inca, there is still no clarity on Codelco. Nor about his level of production.
“Indeed the Inca Rajo project is under study and is part of our business plan for continuing Salvador Division. However, this project is at an early stage in engineering profile and must follow all the stages of study that has an investment project in Codelco, “the company said.
Despite this, the initiative would involve amounts exceeding U.S. $ 1,000 million and would allow Salvador duplicate at least 62 000 tons of copper which reached the site in 2012.
Source: El Mercurio
