Xstrata welcomes sale of Exco assets 18:36 AEST Thu Jun 9 2011 AAP
Mining giant Xstrata says it welcomes the approval by Exco Resources Ltd shareholders of the sale of the E1 and Monakoff copper tenements in northwest Queensland to Xstrata Copper for $175 million.
The approval was given at Exco's annual general meeting on Thursday in Perth.
The E1 and Monakoff copper tenements are close to Xstrata Copper's Ernest Henry Mine and contain open-pit copper mineral resources with completed feasibility studies.
Ore from the projects will be transported to the Ernest Henry Mine and processed through that operation's existing concentrator.
Xstrata Copper North Queensland chief operating officer Steve de Kruijff says the projects will strengthen the viability of the Ernest Henry Mine in Cloncurry and deliver benefits to the local community.
"We anticipate the development and operation of the E1 and Monakoff copper projects will create around 100 full-time jobs, some of which will be sourced from Ernest Henry Mine's existing open-pit workforce," he said in a statement.
He said transforming the Ernest Henry operations to an underground mine involved 330 jobs during construction and provides 400 long-term job opportunities from 2013.
"The E1 and Monakoff copper projects will expand Ernest Henry Mine's expected production profile by utilising the remaining capacity of the Ernest Henry concentrator while leveraging other significant synergies available through our existing site infrastructure, equipment and workforce.
Xstrata expects initial production from the E1 and Monakoff copper projects in the second half of 2012.
Ends.
EXS Price at posting:
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