Xstrata PLC's (XTA.L) Xstrata Coal said it has received Xstrata plc Board approval for the full implementation of the ATCOM East Project in South Africa, at a capital commitment of approximately US$407 million.
The new ATCOM East Project will be integrated into the existing Xstrata Coal South Africa ATCOM infrastructure and produce approximately 5.7 million tonnes per annum of run of mine production and 3.1 million tonnes of saleable thermal product for domestic and export markets annually.
Implementation of the ATCOM East Project includes the purchase of mining equipment, upgrade of the existing Coal Handling and Processing Plant and the construction of new infrastructure. The operation will create 900 new jobs during construction, with 263 permanent jobs at full production and is expected to ramp up to full integrated production in 2011.
Separately, Xstrata Copper announced Xstrata plc Board approval of a $293 million investment to increase the life of its Lomas Bayas mine in Chile by eight years, through the development of the Fortuna del Cobre satellite ore deposit, three kilometres away from the existing operation.
The project, known as Lomas Bayas II, will extend the Lomas Bayas mine life to 2020 and sustain production capacity at the recently expanded rate of 75 thousand tonnes per year of copper cathode.
Construction of the Lomas Bayas II extension project is planned to start in the first quarter of 2010 and expected to be completed in the second quarter of 2012. During the construction phase, some 700 additional jobs will be created.
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