Alumbrera Project to Cost Another US$135mn

Bajo de la Alumbrera, the gold-copper mining project in northwestern Argentina, will cost an additional US$105mn to develop, the Australian mining company M.I.M Holdings Ltd. said.

The blow was the result of increased costs related to project enhancement and increased base-line costs, M.I.M. said.

Production at the mine, however, will be moved forward by two months to early in the second half of 1997.

The total cost of the project is estimated to be US$903mn.

M.I.M. is the project manager of Bajo de la Alumbrera and holds a 50 percent stake while North Ltd. and Rio Algom Ltd. hold 25 percent each.