LONDON--Anglo-Swiss miner Xstrata PLC (XTA.LN) said Tuesday it
has approved, subject to final Australian government approval, a
360 million U.S. dollar investment to more than double capacity at
Xstrata Zinc's McArthur River Mine, or MRM, in the Northern
Territory from 2.5 million tons of ore to 5.5 million tons per
annum from 2014.
MAIN FACTS:
-MRM Phase 3 Development Project will increase annual zinc
production to 380,000 tons and lead production to 93,000 tons.
-Project will reduce average unit costs by over 20 per cent,
reserves will increase by around 70 million tons to 115 million
tons.
-Mine life will extend to 2038 and the project will deliver
robust returns at conservative price assumptions.
-Project will earn Xstrata's cost of capital at a zinc price of
$1,340 per ton.
-Following approvals, the Phase 3 Development will commission in
2013 and reach full production in 2014.
-Shares closed in London Monday at 883 pence valuing the company
at 26.51 billion pounds.
-Write to Ian Walker at ian.walker@dowjones.com
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