And a refinery.

  • Commercial life of mine average cash cost of negative $0.07/lb of produced copper, net of by-products
  • Average annual production, for the first four years of production:
    • Copper cathode: 55,750 tonnes
    • Cobalt cathode: 1,535 tonnes
    • Zinc contained metal: 6,300 tonnes
  • Total Capital Cost is $568.4 million
  • Proven and probable reserves provide for 25 year mine life
  • Measured and Indicated resources: 277.2 million tonnes grading 1.77% copper equivalent
  • Inferred resources: 253.2 million tonnes grading 1.29% copper equivalent
  • After-tax IRR of 24.7%, or 46.0% at current market prices
  • After-tax NPV (at 8% discount rate) of $700 million, or $2.3 billion at current market prices
  • Upside from potential manganese production is still available and will increase the base case NPV by an additional $302 million
  • Manganese (contained in manganese carbonate) production could exceed 100,000 tonnes/year at the current design capacity.
  • Financing is complete , all permits are done , construction will be starting here very soon, with production slated for 09.
  • What is amazing here is that there is sufficient reserves for a 25 year minelife - they will process about 2.8 million tonnes the first 4 years and then about 3 million tons  thereafter, but outside of that there are another 500+ million tonnes of measured , indicated and inferred.

When Mr Hommel claimed there might be a 100 year profitable mine life here - he wasn't kidding.