Resumes studies to locate molybdenum plant in Esperanza mining
Revenues from the sale of this by-product would reduce the cost of operation of this site
Antofagasta Minerals (AMSA) reactivated studies in Esperanza, to install the newest of the four mining operations, a plant to produce molybdenum, which is a by-product that occurs associated with copper ore, the firm sold as concentrates and which also contains gold.
The company had suspended the evaluation of this project as a result of operational problems that the site located in Sierra Gorda experienced since the beginning of its operation in late 2010 and involved a strong impact on their production, for initially expected .
An AMSA executive confirmed that after checking the settings implemented by the administration headed by Diego Hernandez worked and Esperanza shows stable performance, this year will go to be among the three local operations with major production increases. Therefore, the company decided to go back to school to finalize the construction of the molybdenum plant.
The company has already advanced part of the way because because prior to the stoppage had defined the characteristics of the facility and even already have environmental permits for construction.
Thus, in the available documents in the Environmental Impact Assessment (SEIA) System indicates that daily will produce 35 tons of molybdenum concentrate.
At the same time, in one of its 2012 financial reports, the headquarter, Antofagasta Plc, said the plant could provide about 2,000 tons of molybdenum and poses a potential start date could be 2015 production.-
However, AMSA studies, which would be in the feasibility stage, could involve changes in design or project date, which could go hand in hand with the expansion of the plant capacity of Esperanza, who since June has been under environmental evaluation.
AMSA until now only produce molybdenum (used primarily in steel alloys) in Pelambres where scored 8,000 tons in 2012.
Thus, if the Esperanza Plant materialize as previously stated, AMSA would increase 25% the production of this product.
Cost Reduction
Molybdenum plays a strategic role for mining companies and companies try to use it in all the sites where it operates, as the cost of obtaining it is practically zero, so that the income generated by the sale are treated as a credit which is deducted from production costs of companies.
For AMSA itself, this month in a presentation performed at a mining conference, it was noted that the first half, the direct cost of group pre-product credit was U.S. $ 1.76 per pound, which was reduced value to $ 1.26 per pound considering these contributions.
Source: Diario Financiero
