Hancock’s appeal was against a 2010 Supreme Court decision that it should honor a decades-old agreement between mining pioneers Lang Hancock and Peter Wright and hand its 25 per cent stake in Rhodes Ridge over to rival mining dynasty Wright Prospecting.

The Rhodes Ridge battle has been just one of many bouts of litigation to erupt between the two great West Australian mining families following the deaths of their patriachs.

Although the West Australian Court of Appeal found unanimously against Hancock, dismissing more than 20 grounds of appeal, orders have yet to be made.

Gina Rinehart's Of Hancock Prospecting

Hancock’s lawyers said they intended to contest four of the draft orders coming off the decision.

Supreme Court Justice Carmel McLure said “there are a lot of things that are unusual about this litigation” and allowed the parties to make written submissions concerning the orders before finalising them.

Mr Hancock and Mr Wright first met as school boys and went on to form a 50-year business partnership.

Hoping to avoid future litigation between the pair’s children, Mr Hancock divided their shared assets in 1984 and allowed Mr Wright to choose which set he wanted.

However, Hancock’s lawyers argued that subsequent agreements brought the assets back together to enable Mr Hancock to use his expertise to develop them after Mr Wright’s death.

When Mr Hancock died in 1992 he had been unsuccessful in developing Rhodes Ridge and in 1997 the Wright family moved to activate what it claims were its rights under the 1984 deal and take possession of Hancock’s 25 per cent piece.

Justice McLure found the 1984 agreement had been “unambiguously clear”.

Diversified miner Rio Tinto holds a 50 per cent interest in Rhodes Ridge, which is not under contest.

The parties are expected to make their submissions over orders by the end of November.

Read more: [ smh.com.au ]

Cynthia Carroll was appointed to the Anglo American Board in January 2007 and formally took over as Chief Executive in March of that year.  Under Cynthia’s leadership, after a record year in 2008, the Group successfully weathered the global financial crisis.

Explaining her decision to step down, Cynthia said: “It has been a great honour to lead Anglo American.  I am extremely proud of everything we have achieved during my period as Chief Executive and I will always retain enormous admiration and affection for this great company and its outstanding people.  It is a very difficult decision to leave, but next year I will be entering my seventh year as Chief Executive and I feel that the time will be right to hand over to a successor who can build further on the strong foundations we have created.”

Paying tribute to Cynthia, Anglo American’s Chairman, Sir John Parker, said: “Cynthia’s leadership has had a transformational impact on Anglo American.  Her legacy will include, among many other things, a step change improvement in safety, sustainability and the quality of our dialogue with governments, communities and other stakeholders.  Her values represent the very best of Anglo American.

“The Board is enormously grateful to Cynthia for her dedication, her hard work and all she has achieved. We also very much appreciate her willingness to continue as Chief Executive until a successor can be appointed.”

The process of recruiting Cynthia’s successor will now commence and will be led by Sir John Parker, who will also actively support the transition when the new Chief Executive has been appointed.

• Solid operational performance with production increases across five of the seven commodities.
• Kumba Iron Ore production increased by 14% to a record 12.5 million tonnes, driven by faster than planned ramp up of Kolomela mine. Kolomela is expected to produce at least 7 million tonnes in 2012.
• Export metallurgical coal production increased by 12% to 4.5 million tonnes.
• Export thermal coal production from South Africa increased by 10% to 4.6 million tonnes.
• Copper production⁽¹⁾ increased by 12% to 157,300 tonnes, reflecting the full ramp up of the Los Bronces expansion project.
• Nickel production⁽²⁾ increased by 38% to 9,000 tonnes, with production from Barro Alto offsetting the lack of production from Loma de Níquel in Venezuela.
• Refined platinum production of 649,000 ounces was flat, while equivalent refined platinum production decreased by 6% to 626,300 ounces. Production and costs were adversely impacted by illegal industrial action which caused production loss of 42,000 ounces of equivalent refined platinum in the quarter.
• Diamond production decreased by 31% to 6.4 million carats, largely in response to market conditions and the Jwaneng slope failure.
• On 16 August 2012, Anglo American completed the acquisition of a 40% shareholding in De Beers from CHL Holdings Limited for a cash consideration of $5.2 billion.
• On 24 August 2012, Anglo American completed the sale of a 25.4% shareholding in Anglo American Sur to a Codelco and Mitsui joint venture company for a cash consideration of $2.0 billion.
• During the quarter, Anglo American issued corporate bonds with a US dollar equivalent value of $2.3 billion in the US and European markets.

The Interim Management Statement for the third quarter ended 30 September 2012 is unaudited. Preliminary Results for the full year to 31 December 2012 will be announced on 15 February 2013. This report forms Anglo American plc’s Interim Management Statement for the purpose of the UK Listing Authority’s Disclosure and Transparency Rules.

Source: angloamerican.com/

Anglo American and Codelco, with assistance from their respective partners, Mitsubishi Corporation (“Mitsubishi”) and Mitsui & Co., Ltd. (“Mitsui”) and within the conciliation proceeding provided for by the 14^th Civil Court of Santiago, have settled their respective claims in relation to the AA Sur option agreement as a result of extensive discussion and the conclusion that all parties have acted in good faith and without wrongdoing in connection with the settled claims.

Anglo American retains control of AA Sur, reducing its 75.5% shareholding to 50.1%. A Codelco and Mitsui joint venture company controlled by Codelco (“the Codelco/Mitsui joint venture”) will acquire a 29.5% interest in AA Sur through the following two transactions:

• a 24.5% shareholding in AA Sur for net cash consideration of $1.7 billion, representing a consideration of $1.8 billion, adjusted for dividends paid in relation to the shareholding since 1 January 2012 (the option exercise price for Codelco in the January 2012 option exercise window for a 24.5% interest in AA Sur, excluding shareholder loans, would have been approximately $2.5 billion). As part of this transaction, the shareholders in AA Sur have also agreed to effect the transfer from AA Sur to Codelco of certain undeveloped mining tenements to the east of Codelco’s Andina mine which are expected to offer significant synergies and value to Codelco, while being of nominal commercial value to AA Sur; and
• a 5% shareholding in AA Sur (comprising 0.9% from Anglo American and 4.1% from Mitsubishi) for total cash consideration of $1.1 billion. The Codelco/Mitsui joint venture’s acquisition of the 4.1% shareholding is subject to clearance by competition authorities in Brazil. Pending such clearance, Anglo American has agreed to acquire from Mitsubishi a 4.1% shareholding in AA Sur for cash consideration of approximately $890 million and has agreed, upon clearance, to on sell that 4.1% shareholding in AA Sur to the Codelco/Mitsui joint venture for cash consideration of approximately $890 million. This transaction will reduce Mitsubishi’s holding in AA Sur to 20.4%. In consideration for Mitsubishi’s participation in the transaction, Anglo American will also pay a fee of $40 million to Mitsubishi.

The transactions will be settled in cash and Anglo American intends to use the proceeds for general corporate purposes.

The shareholders in AA Sur have executed a Shareholders’ Agreement, which provides a framework for the ongoing governance of AA Sur, confirms Anglo American’s ability to control the company, and provides for board representation and participation in certain decisions for the Codelco/Mitsui joint venture and for Mitsubishi.

Cynthia Carroll, Chief Executive of Anglo American, said: “Today’s commercial agreement demonstrates Anglo American’s and Codelco’s focus on our future and potential as partners in the best interests of both companies, while we have both gained significant value for our shareholders and other stakeholders, and recognise Mitsubishi’s contribution to facilitating today’s agreement. The combination of Anglo American, Codelco, Mitsubishi and Mitsui forms a compelling proposition for future investment in the Los Bronces district – one of the world’s most exciting producing and prospective copper ore bodies – for the benefit of all our respective shareholders”.

Thomas Keller, CEO of Codelco, said: “I am very pleased that an agreement has been reached that fulfils our expectations in terms of value creation for Codelco, reinforces Codelco’s standing as the main copper producer in the world and which sets the ground for an innovative partnership with Anglo American in AA Sur. We can now look forward to working together to build further on the value that both companies have gained through today’s agreement.”

Gerardo Jofré, Chairman of Codelco, said: “This is an enormously positive agreement for Chile, for Codelco and for Anglo American. Our partnership in AA Sur brings together the world’s largest copper producer with one of the world’s premier diversified mining companies. We are all committed to working collaboratively, in a spirit of goodwill, to realise the considerable potential of AA Sur for the benefit of Chilean jobs and the Chilean economy as a whole. We are particularly pleased to have reached this agreement alongside Mitsui, whose commitment to the success of this transaction has been invaluable.”

Sir John Parker, Chairman of Anglo American, said: “We warmly welcome Codelco and Mitsui alongside Mitsubishi as our partners. The new ownership structure of AA Sur provides a unique opportunity for all shareholders to create a new future. Together we will build upon our longstanding commitment to Chile as one of the country’s largest inward investors.”

Completion of the transactions is subject to the injunction being lifted by the 14th Civil Court of Santiago for which the appropriate filings are being made today. Completion of the Codelco/Mitsui joint venture’s acquisition of the 24.5% and 0.9% shareholdings in AA Sur will take place following the receipt of an order terminating the injunction, and is expected on Friday 24 August. Completion of the Codelco/Mitsui joint venture’s acquisition of a 4.1% shareholding in AA Sur is subject to clearance by competition authorities in Brazil and will therefore take place in due course.

“This is equivalent to 7% of Codelco’s annual production and will allow it to consolidate its spot as the world’s largest copper producer,” Codelco’s chief executive Thomas Keller told reporters.

“We’ve formed an alliance to develop the best copper district in the world,” John Mackenzie, Anglo American’s chief copper executive told reporters after meeting with Chile’s Finance and Mining Ministers.

“The government is satisfied that this was resolved as a legal dispute would have taken very long,” Finance Minister Felipe Larrain said.

While the company expects development of the Oyu Tolgoi copper-gold project in Mongolia remains on schedule for first commercial production in the first half of 2013, Rio Tinto and its partners in Mongolia’s Oyu Tolgoi mine are running out of time to strike a power supply deal for the massive copper and gold project.

Oyu Tolgoi is located close to the Chinese border, and a paucity of power options near Oyu Tolgoi – which is located in the South Gobi desert – means Rio and its parties need to rely on importing power from China for the initial years of operation at least.

Electrical transmission cables have already been laid and tested, but the Rio Tinto subsidiary company that is developing Oyu Tolgoi – Turquoise Hill Resources – reported today that a deal with Chinese authorities had still not been reached, despite close to a year of talks.

Rio and its partners have been saying similar things for many months now, and the situation becomes more concerning as Oyu Tolgoi’s start date approaches.

Source: smh.com.au

Anglo American and Codelco have agreed to extend the period for exploring the possibility of negotiating an agreement in relation to Anglo American Sur.

To that end, both parties requested the continued suspension of their legal proceedings on Friday 22 June at the 14th Civil Court of Santiago until Tuesday 17 July 2012 to allow talks to continue.

ONTARIO –The Canadian Institute of Steel Construction (CISC) announced the winners of its biennial National Steel Design Awards competition during its Annual General Meeting & Convention in Ottawa last week.

The prestigious CISC National Steel Design Awards are open to architects, engineers, developers, owners, contractors and other stakeholders involved with a building, bridge, industrial or other steel work project in which engineering demands, architectural considerations or sustainability requirements influenced the designer’s choice of steel as the most appropriate structural solution.

The award winners for 2012 are:

1. Engineering: The Bow, Calgary, Alberta

This iconic, crescent shaped office tower is unique on the continent in its application of a triangular steel diagrid system to a curved building. Open structure, sustainable functionality and striking aesthetics were key features of the project that contributed to its selection as the winner.

1. Architect: Foster & Partners / Zeidler Partnership Architects
2. Structural Engineer: Halcrow Yolles
3. General Contractor: Ledcor Construction Limited (Construction Manager)
4. CISC Fabricator/Detailer/Erector: Supreme Steel LP / Walters Inc. Joint Venture

2. Architecture: The Art Gallery of Alberta

A stunning addition to Edmonton’s cultural landscape, the Alberta Art Gallery has become an iconic building for the city’s artistic identity. Sinuous stainless steel surfaces and complex curving geometry inspired by the aurora borealis were key features that contributed to the project’s selection as the winner.

1. Architects: Randall Stout Architects, Inc. and HIP Architects, Associate Architect
2. Structural Engineers: DeSimone Consulting Engineers and BPTEC-DNW Engineering Ltd.
3. CISC Fabricator/Detailer/Erector: Empire Iron Works Ltd
4. General Contractor: Ledcor Construction Limited

3. Sustainability: Dawson Bridge Rehabilitation, Alberta

After almost a century of use, the Dawson Bridge needed significant repair. The design team’s use of a lightweight composite steel plate and elastomer deck system and innovative technology to restore the bridge to the glory of its past while strengthening its structural performance for future use were key sustainable features that led to the project’s selection as the winner.

1. Engineer: DIALOG
2. Fabricators/Detailers: Empire Iron Works Ltd. and Steel Design and Fabricators Ltd.
3. Steel Erector: Steel Design and Fabricators Ltd.

Project profiles on the winning projects can be found at: www.cisc-icca.ca/awards/national/2012.

To view the photos associated with this press release, please visit the following links:

http://media3.marketwire.com/docs/DawsonBridge.jpg

http://media3.marketwire.com/docs/TheBow.jpg

http://media3.marketwire.com/docs/Art-Gallery-Of-Alberta.jpg

]]> http://woodlawnpost.com/?feed=rss2&p=52979 0 http://woodlawnpost.com/?p=52939&utm_source=rss&utm_medium=rss&utm_campaign=rusal-and-chinas-eximbank-to-spend-850-million-on-new-factory http://woodlawnpost.com/?p=52939#comments Thu, 21 Jun 2012 11:49:33 +0000 WoodlawnPost http://woodlawnpost.com/?p=52939 RUSAL is the world’s largest aluminium producer and one of the world’s major producers of alumina. The company was founded in 2000 and, following its merger with SUAL and the alumina assets of Glencore, became the global aluminium industry leader in 2007.

The world’s largest aluminum producer Rusal has completed a deal with the leading Export-Import Bank of China to develop a $850 million greenfield project in Eastern Siberia.

The agreement was signed by Rusal’s First Deputy CEO Vladislav Solovyev and China Eximbank Vice President Liange Liu.

Rusal and China Eximbank are going to finance the construction of a new anode factory in the Irkutsk Region. Anodes are used in the electrolysis process to produce aluminum.

The plant will supply Rusal’s aluminum smelters in Eastern Siberia which are able to meet China’s growing demand for aluminum, Rusal said in a statement. With the new plant located close to its key consumers Rusal plans to shorten the supply chain and to cut costs.

Rusal needs to reduce costs this year due to the falling prices. Aluminum prices ended at 18-month lows last year on concerns about weakening global demand for the metal.

This forced Rusal as well as other producers to cut output by about 1.3 million tonnes of since December 2011.

Meanwhile Rusal is interested in boosting cooperation with China hoping China’s consumption would help to recover the aluminum market by 2013, if it also cuts production.

“All producers should take responsibility for decisions on production volumes and more actively cut unprofitable production,” Oleg Mukhamedshin, Rusal’s  head of equity and corporate development told Reuters. ”This particularly suggests China.”

Source: rt.com

Rio Tinto chief executive Tom Albanese said “We are directing investment to projects that will generate the most attractive returns for shareholders and are resilient under any probable macroeconomic scenario. Our superior Pilbara iron ore business has one of the highest margins in the industry, low capital intensity of investment and a strong track record of completing projects on time and budget.

“Today’s announcement is in line with our long-held strategy of investing in and operating long-life, low-cost, tier one assets, and consistent with our view of the economic outlook. We are mindful of short-term uncertainties, and remain fully committed to a balanced approach to investment, while maintaining a single A credit rating and a progressive dividend policy.”

Rio Tinto is tightly managing its overall investment programme, retaining flexibility and taking steps to reduce and re-phase capital expenditure as appropriate. The project approvals announced today do not affect the previously announced capital expenditure outlook of US$16 billion in 2012.

Rio Tinto Iron Ore chief executive Sam Walsh said “We continue to see positive prospects for medium- to long-term iron ore demand driven by ongoing growth in Chinese consumption. We continue to forecast that annual Chinese steel production will grow from its current level of around 700 million tonnes to around one billion tonnes a year out towards 2030. This demand growth is coupled with an increasingly challenged supply response, as several high-profile competitor projects have recently been either delayed or postponed.

“Our Pilbara expansion is already well underway, positioning us to capture the opportunities of this market environment. And we have the natural advantages of a readily-expandable Rio Tinto-operated port and proximity to the Chinese market.

“The investment we and our partners are making in Simandou takes us a step further towards the phased development and ramp up of a new world-class iron ore resource.  Further investment will be made as the Government of Guinea progresses its financing strategy and grants approvals for the next steps in developing rail and port infrastructure. The experience gained in expanding our Pilbara operations will be invaluable as we develop Simandou.”

The US$4.2 billion (100 per cent basis US$6.2 billion) comprises:

Pilbara 353 million tonnes a year (Mt/a) iron ore expansion project and mine life extension, Western Australia
Rio Tinto investment of US$2.0 billion (100 per cent basis US$3.5 billion) over the next four years to complete the port and rail elements of the project to expand iron ore production capacity in the Pilbara to 353 Mt/a in the first half of 2015. Of the total US$3.5 billion investment for this infrastructure expansion, US$2.9 billion will be used for an additional two berths on the new Cape Lambert jetty and wharf, the replacement of the existing original Cape Lambert rail car dumper, and the Rail Capacity Enhancement project which includes a significant amount of rail track duplication and rolling stock improvements. US$570 million will be spent on a new gas-fired power station at Cape Lambert, which will be more energy-efficient and produce significantly lower carbon emissions than its predecessor.

A further US$1.7 billion (Rio Tinto share 100 per cent) of largely sustaining capital expenditure to extend the life of the Yandicoogina mine in the Pilbara to 2021 and expand its nameplate capacity from 52 Mt/a to 56 Mt/a. A wet processing plant will also be added in order to maintain product specification levels and provide a platform for future potential expansion. Extending the life of Yandicoogina demonstrates how Rio Tinto can derive additional value from its existing tier one Pilbara assets.

The key component of the project still requiring approval is further mine production capacity. The expansion is subject to a number of West Australian Government and joint venture partner approvals.

The expansion of the Pilbara iron ore business to 353 Mt/a consists of the following stages:
1. 225 Mt/a by Q1 2011 – Dampier port debottlenecking (complete)
2. 230 Mt/a by end Q1 2012 – Dampier port incremental (complete)
3. 283 Mt/a by Q4 2013 – Cape Lambert 53 Mt/a increment (in implementation)
4. 353 Mt/a in H1 2015  -  Cape Lambert 50 Mt/a increment and car dumper  replacement 20 Mt/a increment (infrastructure approved)

Simandou iron ore project, Guinea
Rio Tinto investment of US$501 million (100 per cent basis US$1 billion) in detailed design studies, early works and long-lead items. This is primarily for rail and port infrastructure with first commercial production planned for mid-2015. In Simandou, Rio Tinto plans staged funding approvals with its partners for a progressive ramp up of the operation which will become a long-life, low-cost operation producing one of the highest grade iron ores on the market.

Timing of the ramp up is dependent on receiving necessary approvals from the Government of Guinea and on the Government of Guinea progressing and finalising its financing strategy.
About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore. Activities span the world and are strongly represented in Australia and North America with significant businesses in Asia, Europe, Africa and South America.

For further information, please contact:

Media Relations, Australia / Asia
David Luff
Office:  +61 (0) 3 9283 3620
Mobile: +61 (0) 419 850 205
Karen Halbert
Office: +61 (0) 3 9283 3627
Mobile: +61 (0) 412 119 389
Bruce Tobin
Office: +61 (0) 3 9283 3612
Mobile: +61 (0) 419 103 454

Investor Relations, Australia
Dave Skinner
Office:  +61 (0) 3 9283 3628
Mobile: +61 (0) 408 335 309
Christopher Maitland
Office: +61 (0) 3 9283 3063
Mobile: +61 (0) 459 800 131

Media Relations, EMEA / Americas 
Illtud Harri
Office: +44 (0) 20 7781 1152
Mobile: +44 (0) 7920 503 600
Christina Mills
Office:  +44 (0) 20 7781 1154
Mobile: +44 (0) 7825 275 605

Investor Relations, London
Mark Shannon
Office:  +44 (0) 20 7781 1178
Mobile: +44 (0) 7917 576597
David Ovington
Office:  +44 (0) 20 7781 2051
Mobile: +44 (0) 7920 010 978

Media Relations, Canada
Bryan Tucker
Office: +1 (0) 514 848 8151
Mobile: +1 (0) 514 825 8319

Investor Relations, North America
Jason Combes
Office:  +1 (0) 801 204 2919
Mobile: +1 (0) 801 558 2645

Website: www.riotinto.com

Email: media.enquiries@riotinto.com enquiries.mediaaustralia@riotinto.com

Twitter: Follow @riotinto on Twitter

High resolution photographs and media pack available at:www.riotinto.com/media

The investment includes the construction of mine infrastructure and new equipment to support pushing back the south wall of the mine. First ore from the south wall push back, which will be processed through existing mill facilities, is expected in 2017. The investment will enable production at an average of 180 thousand tonnes of copper, 185 thousand ounces of gold and 13.8 thousand tonnes of molybdenum a year from 2019 through 2029.

Rio Tinto Copper chief executive Andrew Harding said “This investment highlights the additional value we can create by the efficient investment of capital at existing tier one assets. It will secure low cost copper, gold and molybdenum production for the next two decades. We continue to evaluate underground options that will further extend the life of Bingham Canyon, which has already been in operation for more than 100 years.”

Work continues on evaluating projects to expand the tailings impoundment and upgrade the power plant, and obtaining permits for these projects.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore. Activities span the world and are strongly represented in Australia and North America with significant businesses in Asia, Europe, Africa and South America.

For further information, please contact:

Media Relations, EMEA / Americas
Illtud Harri
Office: +44 (0) 20 7781 1152
Mobile: +44 (0) 7920 503 600
Christina Mills
Office:  +44 (0) 20 7781 1154
Mobile: +44 (0) 7825 275 605

Investor Relations, London
Mark Shannon
Office:  +44 (0) 20 7781 1178
Mobile: +44 (0) 7917 576597
David Ovington
Office:  +44 (0) 20 7781 2051
Mobile: +44 (0) 7920 010 978

Media Relations, Australia / Asia
David Luff
Office:  +61 (0) 3 9283 3620
Mobile: +61 (0) 419 850 205
Karen Halbert
Office: +61 (0) 3 9283 3627
Mobile: +61 (0) 412 119 389
Bruce Tobin
Office: +61 (0) 3 9283 3612
Mobile: +61 (0) 419 103 454

Investor Relations, Australia
Dave Skinner
Office:  +61 (0) 3 9283 3628
Mobile: +61 (0) 408 335 309
Christopher Maitland
Office: +61 (0) 3 9283 3063
Mobile: +61 (0) 459 800 131

Media Relations, Canada
Bryan Tucker
Office: +1 (0) 514 848 8151
Mobile: +1 (0) 514 825 8319

Investor Relations, North America
Jason Combes
Office:  +1 (0) 801 204 2919
Mobile: +1 (0) 801 558 2645

Website: www.riotinto.com

Email: media.enquiries@riotinto.com enquiries.mediaaustralia@riotinto.com

Twitter: Follow @riotinto on Twitter

High resolution photographs and media pack available at:www.riotinto.com/media

The project includes building the mill, establishing of a tailings management area, providing electric power, and providing water supplies. The currently operating open pit will be expanded and deepened. The new concentrator will have two grinding lines, with total throughput of 135,000 tonnes of ore per day.

The mill will produce a 26.5% Cu and 60 g/t Ag copper concentrate as well as a 50% Mo product. Teck estimates it will cost US$2.50 per pound to produce copper (as cathode using existing facilities), and US$20.00 per tonne for moly concentrate. With mining cost estimated at US$1.86 per tonne of material moved and processing, general and administrative costs estimated to total US$8.52 per tonne milled, the most expensive aspect of the project is transportation at US$65.00/tonne.

The mineral resource for the expansion is 325.4 million tonnes of inferred material consisting of an enriched portion (13.4 million tonnes at 0.57% Cu and 0.007% Mo), a transition portion (19.8 million tonnes at 0.43% Cu and 0.009% Mo), and a primary portion (292.3 million tonnes at 0.43% Cu and 0.019% Mo).

Probable mineral reserves are 1.4 million tonnes grading 0.50% Cu and 0.018% Mo.

The Quebrada Blanca mine was developed as a heap leach operation by Cominco, and commercial production began in 1994. Teck later bought part of Cominco’s interest, but in 2003 Aur Resources bought both of them out and gained a 76.5% interest in the mine. That share went to Teck when it acquired Aur in 2007.

Operating results from Quebrada Blanca are posted at Teck.com.