Marcona
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[edit] Brief Overview
In 1994, Rio Tinto commenced exploration in Peru for iron oxide-associated copper-gold and the same year discovered the Pampa de Pongo deposit. In December 2000, Rio Tinto formed a JV Agreement with Shougang Hierro Peru to explore for copper in the Marcona district and, in 2003, reported discovery of significant oxide and sulphide copper resources close to the Marcona mine. Most of the iron deposits in the district contain some copper, gold and silver.[1]
[edit] Location
Located approximately 400 km south of Lima, Marcona is the largest known iron deposit in the Pacific coastal belt of South America. Iron mining commenced at Marcona in 1953, and the mine is operated today by Shougang Hierro Peru. [2]
[edit] Ownership
- Marcona mine is owned by Shougang Hierro-Peru. [3]
- Korea Resources Corp. & LS-Nikko Copper Inc.
- Korea Resources (Korean Government) / LS-Nikko (LG
Electronics) owns largest copper smelter in South Korea
- Partners together own 30% of Marcona Copper Project
- Contribute 30% of acquisition, exploration and development
- LS Nikko has right to purchase majority of output for 10 years
on market terms.
- 70% of cathode + 90% of concentrate production[4]
[edit] Production Start Date
- Start-up 2009. [5]
[edit] Deposit size
With a 0.3% copper cutoff, Mina Justa -- the most defined and largest known deposit at Marcona -- has an indicated resource of 347 million tonnes grading 0.71% copper for 5.4 billion lbs. copper, and an inferred 128 million tonnes grading 0.6% copper for 1.7 billion lbs. [6]
[edit] Operating cost per pound
Up to 2.5 Billion lbs. [7]
[edit] Capital Cost
Under US$180M Capex. [8]
[edit] Process
2006
- feasibility / EIA studies starts
- mezzanine financing option
- drilling of other potential targets (2006 . 2008)
- Initial permit applications
- feasibility / EIS studies completed
2007
- government approval and permits secured
- construction financing
- start engineering, construction
2008
- complete construction
- commissioning
2009
- first copper . March 2009. [9]
[edit] External Analysis
| GDP (purchasing power parity) | $13.86 trillion (2007 est.) |
| GDP (official exchange rate): | $13.79 trillion (2007 est.) |
| GDP - real growth rate: | 2.2% (2007 est.) |
| GDP - per capita (PPP): | $46,000 (2007 est.) |
| GDP - composition by sector: | agriculture: 0.9% |
| industry: 20.6% | |
| services: 78.5% (2007 est.) | |
| Unemployment rate: | 4.6% (2007 est.) |
| Population below poverty line: | 12% (2004 est.) |
| Inflation rate (consumer prices): | 2.7% (2007 est.) |
| Investment (gross fixed): | 15.6% of GDP (2007 est.) |
| Budget: | revenues: $2.568 trillion |
| expenditures: $2.731 trillion (2007 est.) | |
| Public debt: | 36.8% of GDP (2007 est.) |
| Industrial production growth rate: | 0.5% (2007 est.) |
| Oil - production: | 8.322 million bbl/day (2005 est.) |
| Oil - consumption: | 20.8 million bbl/day (2005 est.) |
| Oil - exports: | 1.048 million bbl/day (2004) |
| Oil - imports: | 13.15 million bbl/day (2004) |
| Oil - proved reserves: | |
| 21.76 billion bbl (1 January 2006 est.) | |
| Natural gas - production: | 490.8 billion cu m (2005 est.) |
| Natural gas - consumption: | 604 billion cu m (2005 est.) |
| Natural gas - exports: | 19.8 billion cu m (2005 est.) |
| Natural gas - imports: | |
| 117.9 billion cu m (2005) | |
| Natural gas - proved reserves: | |
| 5.551 trillion cu m (1 January 2006 est.) | |
| Current account balance: | -$747.1 billion (2007 est.) |
| Economic aid - donor: | ODA, $23.53 billion (2006) |
| Reserves of foreign exchange and gold: | $65.89 billion (2006 est.) |
| Debt - external: | $12.25 trillion (30 June 2007) |
| Stock of direct foreign investment - at home: | $1.818 trillion (2006 est.) |
| Stock of direct foreign investment - abroad: | $2.306 trillion (2006 est.) |
| Market value of publicly traded shares: | $17 trillion (2005) |
| Currency (code): | US dollar (USD) |
[edit] Notes
- Low cost SX-EW & Concentrate Production
- Open pit mine. (oxides & sulphides)
- Unsurpassed Infrastructure
1. Within 25km of Project:
2. Paved highway (Pan American)
3. National Power Grid
4. Skilled Labour
5. Water Source
Deep Water Sea Ports[11]
- Ideal Mining Location
1. Low elevation
2. Flat, sparsely vegetated terrain
3. No archaeological issues
4. No nearby farming communities - surface rights owned by vendor and Government of Peru
5. No nearby parks or environmentally sensitive areas. [12]
