OHL wins US$83.3mn contract for Xstrata's Las Bambas copper project

Tuesday, March 20, 2012

Spanish construction firm OHL has been awarded a 63mn-euro (US$83.3mn) earthmoving contract for the US$4.2bn Las Bambas copper project in Peru's Apurímac region, the former said in a release.

Anglo-Swiss mining group Xstrata's (LSE: XTA) red metal division Xstrata Copper is developing the project, which is located at over 4,000m above sea level.

Works will include land clearing, massive excavation, the transport of material, revegetation and environmental protection, according to OHL.

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The development of Las Bambas was approved by Xstrata in 2010. The mine is expected to produce an average of 400,000t/y of copper in concentrate as well as gold, silver and molybdenum byproducts, according to Xstrata Copper's website.

The mine is scheduled to be commissioned in 3Q14 with ramp up and full production reached by the end of that year.

The environmental and social impact assessment (ESIA) received community approval in July 2010 and was approved by authorities in March 2011.