Mining - Peru

GyM to start construction on Xstrata's Las Bambas

GyM to start construction on Xstrata's Las Bambas

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Anglo-Swiss mining group Xstrata (LSE: XTA) has given notice to a subsidiary of Peruvian engineering firm Graña y Montero (GyM) to start construction on its US$4.2bn Las Bambas copper project.

The contract with Xstrata is worth US$150mn, GyM reported to securities regulator Conasev.

Las Bambas, located in Apurímac region, will have a mine life of 18 years with initial production of 400,000t/y of copper in concentrate, including gold, silver and molybdenum as byproducts. First ore is expected to be processed in 2Q14.