Xstrata Eyes $2.5bn Chile Mine Investment

Xstrata says the El Morro copper project in Chile may require a $2.5bn investment to take it to production. It also says the mine will have a life of 14 years plus 2-3 years for the construction phase and 5 years for the period of mine closure. Xstrata says El Morro has estimated mineral reserves of 450m tons with an ore grade of 0.58% copper. Xstrata Copper has a 70% stake in Minera El Morro, which owns the project. Vancouver-based New Gold owns the remaining 30%. The mine is still in the permitting phase.