Chile Escondida 1Q Copper Output Falls 30% On Year To 234,229 Trillion
30 Abril 2009 - 10:09AM
Noticias Dow Jones
Copper production at Chilean copper mine Escondida, the world's
largest copper mine, fell 30% on the year in the first quarter to
234,229 metric tons of copper, miner controller and operator BHP
Billiton Ltd (BHP) said late Wednesday.
The drop in production was due to the combined effect of lower
ore head grade, increased hardness of the ore treated which
resulted in lower copper recovery, and production problems at one
of the concentrator plants.
Escondida produced 155,956 tons of copper contained in
concentrates and 78,273 tons of copper cathodes.
While concentrate production plummeted 45% on the year, cathode
production increased 44% on the year due to "improved recovery and
an increase in the level of activity and ore accumulation in the
process stockpiles," the miner said.
BHP holds a 57.5% stake in Escondida, while Rio Tinto PLC (RTP)
currently holds a 30% stake, which will drop to 15% once Aluminum
Corp. of China Ltd. (ACH), or Chinalco, seals its tie-up with Rio
Tinto and Chinalco takes the other 15%. A Japanese consortium made
up of Mitsubishi Corp. (8058.TO) (60%), Mitsubishi Materials Corp.
(5711.TO) (20%), and Nippon Mining & Metals Co. (JJD-MMM)
(20%), hold a total 10% stake in Escondida, while International
Finance Corp. (IFC.KW), the private sector unit of the World Bank,
has the remaining 2.5% interest.
-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244;
carolina.pica@dowjones.com